My earlier post on the 343 GT concept car described Volvo of America’s interest in the North American sales potential for a face-lifted and re-powered version of Volvo Car BV’s compact 340-series three-door hatchback, an effort doomed to failure when it became clear that its intended B21F four-cylinder engine would not achieve better fuel economy ratings than those of the existing 240-series with the same powertrain. As the Federal government’s corporate average fuel economy standards (CAFE) were one of the rationales driving the initial 343 GT discussions, that realization helped to scuttle the project.
But it wasn’t the last time our corporate interest was piqued by the vision of a new range of compact cars sourced from our Dutch colleagues in Eindhoven. The then-exploding U.S. market popularity of small, sporty coupes didn’t go unnoticed in Rockleigh, either. Was there a way to address both opportunities?
Serendipitously, Eindhoven was then deep into the development process of Volvo’s first front wheel drive car, the 480 ES. The 480 ES was the first production car resulting from Project Galaxy, a 15-billion Swedish kronor (about $2.5 billion at the time) effort to take Volvo into the 1990s and beyond with a full range of compact and mid-size front wheel drive cars which owed nothing except (quite literally) a few nuts and bolts to their RWD predecessors. Volvo Car BV’s Jan de Vries was responsible for the exterior design, and Peter Horbury, then a Volvo consultant, handled the interior.
Peter Horbury, by then Volvo’s design chief, inspects a later S60 proposal in the Gothenburg studio. A rare gentleman in the ego-driven world of car design, Peter is sadly no longer with us.
During the mid-1980s, the KLM flight attendants on the regular Newark to Amsterdam run began to recognize me as I settled in for one of many business trips to Eindhoven. Reviewing the U.S. sporty compact market segment, selecting key competitive targets, and discussing detailed North American specifications for the 480 ES with my Dutch counterparts was occasionally frustrating, but eventually rewarding, as our collective vision for the four-seater’s potential began to take shape.
For a while, I was a regular on the Newark-Amsterdam run. Then, Amsterdam to Eindhoven was a puddle-jumper. (Source: www.planespotters.com/Jan Seler)
We considered the Datsun 200SX, Honda Prelude, and Toyota Celica to be our primary Asian competitors, realizing that they were the likeliest nameplates to be cross-shopped by our intended target customers, younger singles or couples in their late-twenties or thirties, while the Isuzu Impulse, Mitsubishi Starion, and Subaru XT were judged to be lesser threats.
Judging by these photos, all Japanese sporty coupes were apparently a shade of red in the mid-80s. (Sources: www.automobilecatalog.com (200SX and Prelude); www.bringatrailer.com (Celica)
Of course, there were also a few European models we kept tabs on, including the Audi Coupe GT as well as the SAAB 900 and Volkswagen Scirocco. As BMW had then eliminated four-cylinders from its 3-Series lineup, the Ultimate Driving Machine was removed from consideration.
These were the primary European suspects we tracked during the development of the 480 ES. (Source: www.bringatrailer.com)
After the 480 ES’s European introduction at the 1986 Geneva Motor Show, the generally favorable initial reaction intensified our efforts. In addition to being the first front wheel drive Volvo, the 480 ES broke lots of new styling ground for the brand (despite its obvious 1800 ES inspiration).
Images from the 1988 Dutch brochure. Photo from the web.
It was the first Volvo with pop-up headlamps as well as being Volvo’s first “bottom breather” (featuring an under-bumper radiator grille, a styling detail that caused some consternation in Gothenburg, as some felt that its positioning devalued Volvo’s iconic “slash” and iron-mark identification).
Not the front end of your Uncle Olaf’s Volvo, that’s for sure. (Source: www.bringatrailer.com)
Inside, the Dutch worked hard to take full advantage of the dawn of the microprocessor age, with an electronic information center providing pre-start checks of fuel, oil, and outside temperature levels, en-route monitoring of seven operating parameters, as well as additional warning prompts if required.
A close-up of the 480 ES Info Center, with a circuit board illustration to emphasize its high-tech roots.
As our intended fall 1987 U.S. introduction date neared, we settled on a product program including both naturally-aspirated (B18F, 95-HP) and turbocharged (B18FT, 120-HP) versions of the 480 ES’s sole, Renault-sourced engine, a 1.7-liter four-cylinder. Both five-speed manual and four-speed automatic transmissions were to be offered. In an effort to keep the entire program manageable, we agreed that all models should be fairly well-equipped, with a sunroof and leather upholstery being the only options for non-turbo versions, while both items were standard equipment on turbos. The color program was also limited to six choices; we deemed that a necessary level of complexity given what our competitors were offering.
We covered the basics with our exterior color selections. Yes, we included red.
The cars were fully specced-out and priced; early U.S. production units were sent to Rockleigh for market evaluation, and all internal and external systems were “go” when, in February 1988, management on both sides of the pond suddenly pulled the plug on the program. Dollar-to-guilder exchange rate fluctuations had moved the non-turbo 480 ES variants into the loss category and substantially reduced profitability on the 480 Turbo.
The 480 ES was surprisingly fun to drive, especially in turbocharged form. It was a sad day when our evaluation cars were scrapped. (Source: www.bringatrailer.com)
With bigger lutefisk to fry (maintaining sales of the existing 240, 740, 760, and 780-series cars in a challenging economic environment), it was a bitter defeat after the time and resources devoted to Federalizing the 480 ES, not to mention the anticipation of our dealers and enthusiasm from potential customers who were aware of its impending U.S. introduction.
In retrospect, that forced decision may have been for the best. The early 480 ES suffered from more than a few quality-related issues. Though these were addressed as time passed, they could have tarnished the car’s reputation and given Volvo a black eye in the States.
Still, one can always wonder what might have been. Our corporate flirtation with our Dutch colleagues was not yet over, as we will shortly see…
Related CC reading:
Ebay Find – 1989 Volvo 480 Turbo: Volvo Looks Forward And Backward
I always like these b/c they were “forbidden fruit” not offered in the US, and popup headlights were definitely my era. Always a treat to see them in 1990 when I was in school in Copenhagen, as well as the sorta similar Accord Aerodeck.
Thanks for this ! Like the look and the format, would have been in the market if they had come to North America.
There were also plans for a convertible. Those vehicles must have been stopped at a very late stage of development, too. Some brochures had already been printed.
I remember holding such a brochure in my hand at a flea market in northern Germany a few years ago. Unfortunately I don’t remember whether the texts were Dutch, English or German (at least it wasn’t Swedish).
Even more I regret today that I didn’t buy the brochure back then …
Thanks Stephen. The subject of forbidden fruit is always fascinating, particularly when the fruit comes so close to harvest.
Your article and the tantalizing images of just small bits of the car prompted me to go online and find photos of the whole car. I’ve heard about these but never seen one in the metal. And you know…meh? IMO. It’s quite a dated design of course nowadays, but my overall impression is Saturn SW mixed with a bit of late 1980s Honda Accord.
I had a Saturn SW2 and actually cross-shopped that with a Volvo 850 not that long after those had come out. I convinced myself at the time that the Saturn was “nearly as useful” but of course at a much lower price. Let’s just say that wasn’t one of my best purchasing decisions. The biggest problem with the Saturn was the size…which I think would have been the same issue with the 480. It’s just too small a wagon to really serve as a wagon and otherwise just not inspiring enough to want to drive something that looks like that that can’t be much of a wagon.
I realize that’s kind of a strong opinion, but I’ll just leave it by saying that all things considered, I suspect that Volvo did itself a favor by not importing this series to the US. I understand that they did reasonably well in Europe, so all was not lost.
Thanks again for the history. I do enjoy reading these inside stories.
Whoops, meant to include the photo of the 1988 480 whole car.
Hi Jeff, we overlooked that detail. The post has been updated adding a brochure image of the model.
Stephen – Having always admired the 1800ES, when the 480 appeared on the radar maybe I was hopeful for a US version. It was not to be but I did get a decent Volvo promotional 1/43 scale model of the car – made by a Dutch diecaster “AHC” and packaged with appropriate Volvo graphics.
The nose of the 480ES looks remarkably similar to that of the almost contemporary Buick Reatta.
Thanks for this, Stephen, much appreciated!
By now, the 480 has gained cult-status here. Below, a recent picture of John de Vries (funny how you translated his first name into Dutch, or did Jan become John later on?). Back then, Rob Koch led Volvo’s design center in Helmond. Granted, it’s really close to Eindhoven.
After Volvo Cars, De Vries went to DAF Trucks to design bigger rides. (photo courtesy of Autoweek.nl)
That’s an interesting question – I’m sure I remember it being written as ‘Jan’ in the very early-’70s but I dunno if that was simply an error in translation. Over-translation by journalists, perhaps…
I cannot find a definitive answer.
Anyway, I’ve long considered him to be an unsung hero – some very neat design details.
For those who want to know more about the Volvo 400 series, I recommend – once again – the corresponding video from Andy Haslam’s superb “Big Car” productions.
The creation of the 480 ES plays a significant role here:
Oooh, sorry. The link wasn’t what it was meant to be.
THIS is the right one:
Thanks for this inside look at the 480, although as Jeff already pointed out, a few shots of the actual car would have been helpful as many North American readers might not be familiar with it.
I also agree with Jeff that Volvo did itself a favor by pulling the plug at the last minute. The sporty coupe market was rather flooded at the time and I just didn’t think then (and now) that the 480 was compelling enough to break through. The demographics of the sporty coupe buyers were rather different (significantly younger) than Volvo buyers; Volvo’s image was becoming pretty seriously middle age. I don’t think the brand then had what it would have taken to be successful in what would have been a very new market niche for them.
If it was more uniquely styled, like the similar-looking Geo Storm Wagonback, it would have stood a better chance in North America (IMO). The Storm’s design had character and modernity, that would have made this Volvo appear conservative/dated. Borderline bland. Would have been interesting, if Volvo originated more interesting design like the Storm. Even if they were indirect competitors, as sporty coupes.
Currency fluctuations were brutal for European manufacturers trying to sell in the US all throughout this era. That’s why we stopped getting German Opels and Capris, along with Peugeot and Renault. The manufacturers who continued to export to the US were forced upmarket.
When introduced in the US in 1975, the Volvo 240 was priced like a nicely-equipped Impala, but by the end in 1993 it was more expensive than a Buick Park Avenue.
An interesting tale indeed.
Perhaps Volvo should’ve got Peter Horbury to style it, as his subsequent Volvos are all really good-lookers: the 480 just isn’t. Not ugly, but not at all distinguished either, and I’ve never for a moment thought of it as a Prelude or Celica competitor. Even if the exchange rate maths hadn’t knocked it off for the US market, I’d strongly suspect that poor sales would have anyway. Such buyers valued style first, and a decent but dull machine that looks quite a bit like a frozen-drink Tetra pack isn’t that.
This.
Yes, most of the competition just had a “this car could have a trunk but we really thought a swept-back hatch looked cooler” silhouette (and the Celica and SX DID have trunked choices). The shape as-was seemed aimed at the GTI – and even then the GTI was up against so many cooler-looking options – someone had to be really sold on the utilitarian shape. Note how long it took Audi to being over the A3 hatch. I remember the 780 and a smaller scale version of that would’ve been a better look- but even then, seeing what a tough sell the MB 230K hatch and the BMW 318ti were at their price points, that might still have not been the answer. A cool idea, but I think Volvo made the right call NOT pursuing it.
“Perhaps Volvo should’ve got Peter Horbury to style it, as his subsequent Volvos are all really good-lookers: the 480 just isn’t.”
In my opinion, the design of the 480 was far more striking than that of the somewhat random Horbury-influenced C30.
It’s once again a love it or hate it thing – similar to what happened with the Triumph TR7.
Bertone, Coggiola, and Volvo Sweden (Rolf Malgren and Jan Wilsgaard himself) also came up with a 480 design. Yet the final verdict was in favor of Rob Koch/John de Vries.
It’s too bad the US market 480ES didn’t happen my BMW mad cousin was seriously excited at the prospect of a 480ES Turbo to replace his Scirocco (a rare moment of straying from the roundel). With hindsight the power levels seem modest, my 16V Scirocco was getting 120hp without a turbo but then again the 480 was saddled with the same basic engine as a Renault Alliance. Style wise, the US market of the time seemed accepting of “bread van” hatchbacks since the Honda Civic sold well, as did the Dodge Colt/Mitsubishi Mirage. It’s too bad we didn’t get the Honda Accord Aerodeck for a bigger version.