Crossover, and out: BMW, Volvo quit wagons

NEW YORK--BMW and Volvo are giving up on the large station wagon segment in the United States.

Volvo, the brand that used to be synonymous with wagons, is ending U.S. sales of its V70 after the 2010 model year and may drop station wagons completely within a year.

BMW of North America will not import the next generation of the 5-series station wagon. The redesigned 5-series sedan goes on sale in the U.S. in May.

Station wagons no longer are selling well in the United States because buyers are switching to crossovers such as Volvo's XC60 and XC90, said Doug Speck, CEO of Volvo Cars of North America. Volvo is also considering ending U.S. sales of the smaller V50 wagon after the 2011 model year.

"We are following the customer," Speck said at the New York auto show last week. "The reality is the size of the segment has declined tremendously."

Volvo is giving the V50 another year because there "is a bit more energy in the small wagon segment," Speck said.

For Volvo, the move is significant. The Swedish brand has been selling station wagons in the United States since 1957. The V70 was introduced in the United States in 1998. The V50 debuted here in 2005; and its predecessor, the V40, went on sale in the United States in the late 1990s.

BMW decided to end 5-series wagon sales in the United States because of low sales and this year's introduction of the 5-series Gran Turismo crossover. BMW will continue to sell the smaller 3-series station wagon.

(Source: Automotive News)