Volvo opens its doors to south via Cebu

Seeing the growth potential in the south, luxury car brand Volvo is entering Cebu to capture and provide wider options for the growing clientele for premium car brands covering the southern part of the country.

"We observed an enormous development in Cebu. International focus is magnified here. It is now becoming a known international convention hub, and international gateway in the south," said Volvo Car Asia Pacific regional product manager Jack Zaal.

Volvo Cars through its Philippine partner Viking Cars Inc. had appointed Pasajero Motors Corporation (Pamocor) as the exclusive distributor for the whole segment of Volvo cars, initially Cebu.

In the Philippines, the European car brand is competing intensely with BMW and Mercedes Benz. In its 10-year presence in the Philippines, the brand holds a 30 percent share of the premium car market of the country.

In the mid-size and luxury car market category, Volvo is already in the number one position in the Philippines, but in the compact size, it is behind other premium brands especially BMW.

According to Zaal, he sees a strong growth of the upper class market in Cebu, which he projects would also double the demand for their cars in the next few years.

According to Viking Cars Inc. president and chief executive officer (CEO) Alberto B. Arcilla, the company was able to sell about 300 Volvo cars last year in Metro Manila alone.

There are now around 3,000 Volvos running around the Philippines.

"We are confident that the wagon variant design will attract more buyers in Cebu," Arcilla said.

With its entry in Cebu, Arcilla said they are targeting to sell at least 10 to 15 cars in the next three months.

Volvo cars price is pegged at a low of P1.9 million to a high of P3.9 million. Zaal said the company is focused on taking care of its customers, while making sure of the safety, highest quality, and most of all environmentally friendly car products.

Zaal said despite the economic uncertainty in the Philippines, the country has the highest performance in terms of sales in the Asia Pacific region.

He said Cebu is a very strategic location. Consumer profile in the province, including the rest of Southern Philippines' market is now getting sophisticated and would already consider quality, as well as luxury.

Zaal said because of the increasing market for Volvo car products in Asia, the Sweden-based company is planning to introduce a design specifically targeted for the Asian market next year.

For 78 years, Volvo has delivered and continues to deliver a legacy of safety, care for environment and quality. For 2006, this core values are embodied in the complete line of Volvo automobiles.