Volvo Has a Hit on Its Hands in Sporty S40

Volvo’s entry-level S40 sports sedan is attracting younger buyers and more female buyers to the Swedish brand’s showrooms--two key trends revealed in exclusive retail sales information gathered by J.D. Power & Associates.

The near-luxury S40, introduced to the U.S. market in September, is also drawing buyers from dominant Japanese auto makers Toyota and Honda, according to data from the Power Information Network of new-vehicle dealers in 11 major metropolitan markets.

Only 15.6% of S40 sales are to existing Volvo owners, versus 28.4% of sales of other Volvo models, said Tom Libby, director of consulting for Power’s retail information division.

The Swedish car maker, since January 1999 part of Ford Motor Co.’s Premier Auto Group, will also welcome the news that the S40 is moving off the lot more quickly, with an average 19 days of inventory versus 38 days for the entire Volvo line.

“With its lower price and smaller dimensions, the S40 is doing a good job of attracting new customers to the Volvo showroom,” Libby said.

“Owners of mainstream Japanese vehicles looking to step up to a near-luxury car now have another model to put on their shopping lists.”

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Buyer Attributes All Volvos Volvo S40 Median Age 45 42 Female 41.9% 52.6% Existing Volvo Owner 28.4% 15.6% Honda Owner 9.2% 12.7% Toyota Owner 6.7% 10.1% Nissan Owner 3.9% 5.8% Mazda Owner 2.4% 4.8% Saturn Owner 1.6% 4.8%

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Source: J.D. Power & Associates