Cash-flow issues and increased focus on new technology and other vehicle segments have postponed the redesign of the 2010 Volvo XC90 SUV. The original redesign due for 2010 is now expected in either 2012 or 2013. The XC90 was not the only Volvo model postponed, as the S60 sedan also received the same treatment. The S60 was originally supposed to be redesigned in early 2009, but will be done in 2010 instead.
Funding issues can be directed at developing technologies such as Volvo's "City Safety" crash-avoidance system, which is soon making its debut on the 2010 XC60 crossover SUV. The addition of the new small premium crossover XC60 for 2010 also has drained Volvo of funding for the redesigning of its current lineup. The downsizing trend in the automotive industry also has Volvo focusing on its small nontruck and SUV cars, such as an all-new S40 sedan.
New emissions technology, such as the DRIVe eco-car and a new diesel hybrid for 2012, has also sapped Volvo's funds as it must adapt to increasingly stringent emissions laws. While a $271 million loss in the first half of 2008 has caused Volvo's product cycles to become longer than most luxury-car makers would allow, Volvo must endure through these tough times.
Source: Motor Authority