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Volvo warned about "denigrating" XC60

Volvo has been warned about “potentially denigrating” its new XC60 compact SUV if it imports a cheaper, more tax efficient front-wheel drive version of the crossover, which made its debut at last week’s Geneva motor show.

Cautioning the Swedish brand “not to undo all the good work on residual values” Jason King, head of market intelligence for EurotaxGlass’s, said: “The XC60 should attract a certain type of buyer who wants the all-wheel-drive kudos without going off road.”

King said dealers would have to deal with a lower price point for the front-wheel-drive (170gm per kilometre CO2) 2.4-litre diesel version, which would be likely to cost £23,000 from next year, against all-wheel-drive equivalents, starting from £25,000 this October.

He added: “If Volvo wants a bona fide rival for BMW’s X3, and the Audi Q5 then don’t mess around with the XC60’s core image.”

Borders dealer John Cleland, a member of Volvo’s UK strategic planning group, urged the company to win extra fleet business with a 2-litre 140PS (approximately 150gm) diesel front-wheel drive variant, and bypass the 2.4-litre option.

John Wallace, Volvo’s corporate sales manager, said: “We will take a view on what the car may or not do for us.”

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