Volvo thinking of sending Chinese built Volvos to the USA
The new China-based owners of Volvo and the Swedish car maker’s management team are considering exporting Volvos assembled in China to the U.S.—a potentially risky move that might harm the brand’s Scandinavian identity and could make it among the first to bring China-made vehicles to the U.S.New Volvo Chief Executive Stefan Jacoby said he sees the idea as a way to help his company reduce foreign-exchange risk.
Exporting made-in-China Volvos is “one opportunity” Volvo is exploring with China’s Zhejiang Geely Holding Group Co., its new owner, as part of a strategic plan it is preparing for release by March, Mr. Jacoby said.
The strategy is focused heavily on an effort to boost demand for Volvos in China by putting in place more capacity to make the cars there and develop more luxurious and large vehicles.
Another option the company is weighing is to build a Volvo assembly plant in the U.S., an individual close to Geely said. But Volvo and Geely essentially have decided to assemble Volvos in China, Mr. Jacoby said in an interview on the sidelines of the Detroit auto show this week. He said Volvo is likely to build new manufacturing capacity in multiple locations.
But the decision hasn’t been made on whether to export China-made vehicles to the U.S. and elsewhere. Any production plan for China must be approved by the Chinese government.
Ford Motor Co., which sold Volvo to Geely, has been producing Volvo cars in China for several years and will continue to do so for Geely and Volvo. But none of these vehicles are exported to the U.S.
Volvo is trying to reduce currency-exchange risk around the world, especially the euro-U.S. dollar exchange that has eroded the profitability of shipping to the U.S. Volvos produced in Sweden and Belgium.
“The major challenge here in the U.S. is that we’re too dependent on euro-U.S. dollar exchange rates,” Mr. Jacoby said.
“China offers an opportunity in that respect. It doesn’t get rid of but at least allows us to reduce currency risk exposure.” The Volvo CEO cited the relative stability of the Chinese yuan against the dollar.
The move would mean Volvo would tread onto the unbeaten path to sell Chinese-manufactured premium cars in advanced markets such as the U.S., although Honda Motor Co. has been exporting a compact car it produces in China to Europe for several years.
While many Americans readily accept a multitude of products made in China, including high-tech gear such as computers and iPhones, almost no China-made vehicles are sold in the country.
Two individuals close to Volvo and Geely said that while the Hangzhou-based auto maker, which finalized its acquisition of Volvo last year, would welcome the move, its wisdom is likely to become “a point of contention” with Volvo’s board.
As part of the consideration to export Volvos from China, Volvo and Geely are mulling whether to build a new Volvo assembly plant in the southwestern China city of Chengdu, next to a nearly completed Geely factory.
Geely Chairman Li Shufu told The Wall Street Journal in September that Geely and Volvo were looking at revamping an existing facility to make Volvos as a way to quickly start producing in China and boost sales.
Mr. Li said at the time that Volvo and Geely plan to build as many as three assembly plants in China to make a total of up to 300,000 of the Swedish brand’s vehicles a year, and that they were looking at Chengdu, Shanghai and the northeastern city of Daqing as possible sites.
This week, one of the knowledgeable individuals said the company instead was leaning toward building a new plant in Chengdu, which would allow Volvo to implement and carry out “Volvo production systems” in producing Volvo cars from the ground up.
That, he said, might help ease the possible reluctance of American and other global consumers to buy made-in-China Volvos.
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Never owned a Volvo…looks like i won’t own one in the future. There goes Volvo’s premium image. SINOFIED!
What’s the matter, running out of Chinese sites to troll?
Nothing personal, just wondering how long before you get banned, here too.
What you know a knight in shining armor calling for a crusade against Chinese retardeness.
Not my war, never been east of Ural. Just leave Volvo alone. Nice cars, good value new and a great value if bought used.
wm
“Not my war,”
It is actually. The reality is Chinese are coming! And they are going to ruin the world or anything with value. Would you put your spouse and children in a automotive built by the Chinese? With tires made by the Chinese? HELL NO!
“Nice cars, good value new and a great value if bought used.”
Good quality and Volvo will be a thing of the past. Only used Volvo prior to Chinese purchase will be of value.
Chinese take over is never a good thing.
China should takeover both Koreas first before they takeover the world.
@ Ugly Chinaman
> China should takeover both Koreas first before they takeover the world.
China can’t. There is no assurance that PLA wins in 2nd war even if it commits its entire PLA troop strength in Korea; becuase the qualitative superiority of ROK troops still stands, and PLA group troops cannot fight while NK airspace is controlled by roughly 1,000 ROKAF, USAF, and USN fighters 24/7 and are under constant bombing.
China couldn’t even win a war against Vietnam in 1980, and picking a war against ROK military and US forces is a recipe for disaster.
IHC, what happened to the fancy laser system that was supposed to be able to shoot artillery at 1 shot per second?…. didn’t do much good when the DPRK started shelling the South…In fact it didn’t work at all (probably because it only exists in your mind and not in real life). The ROK military is a bunch of pussies and cowards who can’t do anything for themselves without support from the US military.
Nice mention of China not beating Vietnam but history shows that even with air superiority the US got their @sses handed to them by the same bunch of peasants who later used that training to defeat the Chinese.
The US sees China as a pure threat… so does korean_guy, that’s why he hides in the states and won’t live in south korea.
http://search.japantimes.co.jp/cgi-bin/eo20110105mr.html
Without air support the current US soldier would be like a fish out of water. Other than the elite units they have been spoiled by air superiority for too long. Unfortunately the downside of that would be a repeat of the losses encountered in WW1 and WW2.
Wasn’t this thread about Volvo?
Wongfufu
“Wasn’t this thread about Volvo?”
Yup, until sinofiles jacked it up.
@korean guy who STILL owes me 100 Kuai.
Started with the first comment when some insecure south korean posted…..
Wongfufu
“korean guy who STILL owes me 100 Kuai.”
I will give you an advice worth 1000 Chinese fish dish. That is: get the f**k outta China!
Now you owe me 900 kuai!
Sorry, I’d rather take the cash…in person. I don’t take advice from cowards who claim to be korean but don’t even live there.
Wongfufu
“I’d rather take the cash…in person.”
In person? So you can try to chop me up with a Chinese meat cleaver? You are sounding creepier day by day son. Plus I ain’t about to step foot in China (I, unlike you, value my life) so you are SOL. And don’t forget…you owe me 900 kuai for giving you good advice.
“I don’t take advice from cowards who claim to be korean but don’t even live there.”
My advice apparently too late…your white-ass is too Sino-fied. So I cease to be Korean because I don’t live there? WTF is wrong with you? Too Chinese food cooked in sewage oil is bad for you. Now you owe me 1900 kuai.
@korean guy
Instead of slinging baseless insults you should just try to look after your wife a bit more. Scotchguard might help.
http://yeinjee.com/2010/korean-man-married-anime-pillow/
Nothing there worth taking over!! A couple of nukes would flatten the place quite nicely and then they can use the reclaimed land to build more auto factories.
No need for you to worry about this. U.S. has already accepted and encouraged China to send troops into NKorea to keep the NKoreans in check. I feel sorry for the Koreans that for its long history it still could not determine solely its own affairs. But this is the law of physics! When you’re sandwiched by superpowers you may not have too much choices to call you own shots. However, SKorea did show the world that it has able to shine on the world stage. For this, we in the States and people else where should give her credits.
Hey you moron-did you even know the so called almighty new ROK made ultra modern tank had leaking problems? A number were drawn in exercises and solders died inside the tanks. How will they possibly perfom in REAL battles? So much for Made in Korea! LOL.
This is the fastest way of ruining Volvo brand.
It’s time to ban the two insecure Korean douchebags in this forum.
This is no worse than having North American-sold VW’s built in Mexico.
There is a world of difference between a German-owned company building cars by German standard in Mexico and a Chinese-owned company building by Chinese standard in China.
It doesn’t even have to be a Chinese company, a Chinese RUN company is all it takes for the product to take a downward spiral. Chinese manufacturers and factories under foreign supervision has been successful in churning out decent (not excellent) products (excellent products are rare these days).
For all you Volvo fans mark the DAY of Chinese purchase of Volvo if you ever want to own a used one.
Its not my fault the nation with the biggest population happens to be the most retarded and with the one of the most jacked up regime called the Chinese government. I feel sorry for the next generation having to deal with the Chinese.
Right now some Volvo’s are made and some parts on current Volvo’s are Made in Malaysia & the car shipped to Sweden to be assembled BEFORE shipping them to the USA. Would hope that Volvo in Sweden keeps a lid on the products being shipped to the USA. Americans are willing to pay premium prices for cameras made in Japan, Electronics made in Asia & every cellphone I ever bought none were made in the USA. The chinese made goods I have purchased I ended up throwing them away rather then fixing them to buy another one. I hope that won’t be the case with Volvo or Volvo parts made in China. Because if it is it will cheapen the brand and affluent Americans may seek another brand if they feel it is not a premium product. Somehow Volvo must keep its luster of being “premium” and assembly in Sweden is one way to continue that.