Photo of 2014 S60 sedan courtesy of Volvo.

Photo of 2014 S60 sedan courtesy of Volvo.

North America remained Volvo's largest market just ahead of China for 2013, as the automaker reported a 10.1% decline in sales partly due to a shift toward retail sales and away from rental fleet sales.

Volvo North America sold 61,233 vehicles in 2013 compared with 68,117 in 2012. The S60 entry luxury car led the way with 23,210 units, and the XC60 luxury SUV sold 19,139 vehicles. Volvo increased XC60 sales by 3.3%, while S60 sales remained flat, falling 0.6%.

Volvo sales fell 20.5% in December "due to a planned strategy to move away from fleet and focus on retail sales," the automaker said in a release.

The automaker anticipates growth in the U.S. market in 2014 due to the introduction of its new Drive-E engines.

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