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Volvo is conducting a "healthy internal debate" on whether or not to offer British fleets a lower CO2 front-wheel-drive version of its XC60 4x4, which will have its market launch in October.
While the all-wheel-drive 2.4-litre, five-cylinder, 163PS diesel model is likely to have a £25,000 price tag and "circa 190g/km" CO2 emission rating, its front-wheel-drive counterpart, costing around £23,000, would offer 170g/km.
But Jason King, head of market intelligence for EurotaxGlass's warned against "dragging down the XC60's RVs, damaging Volvo's brand perception and its whole range in one fell swoop by diluting the 4x4 kudos".
He said: "It would undo good work done on RVs. Even mainstream products like Nissan's X-trail and Hyundai's Santa Fe are not taken seriously without all-wheel-drive. The XC60 would be denigrated alongside the BMW X3 and Audi Q5,"
John Wallace, Volvo's corporate sales and leasing manager, said: "We will take a view on what the car can do for us and our corporate customers, there are pros and cons."
He added: "Because you can, does not mean you should. It is about whether SUVs need all-wheel-drive and could it damage RVs and confuse the market with only a value difference of around £1200 down the road? It is not available until 2009 so we have plenty of time for a healthy debate."
Wallace expects the XC60, with standard City Safe automatic braking intervention to avoid or reduce the impact of tailgating collisions, to match or exceed the XC90's 40% fleet element and earn RVs on a par with German rivals.
He revealed that re-aligning Volvo ranges and specifications in a revised business car policy resulted in "pure end user corporate sales order book" rising by 170% in January.
Scottish dealer John Cleland, a member of Volvo's UK strategic planning group, urged the company to win extra fleet business with a 2.0-litre 140PS (approximately 150g/km) diesel front-wheel drive variant, and bypass the 2.4-litre option.
Lex Kerssemakers, vice president of brand, business and product strategy, said: "Five years ago we would not have dared taking the front wheel drive route. It is not a fake car and customers are ready for it. Corporate users think twice about a 200g/km-plus 4x4, which costs you maybe £200 more a month tax than the more fuel and tax efficient equivalent."
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