Geely already has some grand plans for Volvo when it finally takes over the Swedish brand known for safety. It’s a twist of irony for many as Chinese car companies are rather infamous for their iffy crash safety, thanks to the widespread publicity of how badly their dirty cheap models perform in crashes.
A new Volvo factory in China built by Geely will churn out about 300,000 cars per year for the Chinese market, while other Volvo factories around the world will help bring up the total annual output to a whopping 1 million cars! Yes, you can produce all you want but will you be able to sell all the cars you produce? Apparently this is their aim, to sell a million cars a year by 2013, up from 458,323 they recorded in 2008. That’s an increase of about double.
Our very own Volvo assembly plant in Malaysia produces the S40, V50 and the 2.5T variant of the S80 for the local market. The Malaysian plant exports the S40 and the V50 for sale in Thailand. Hopefully Volvo is being rewarded in terms of various incentives appropriately by our government, otherwise there’s just no point for manufacturers to come in and do anything here if the case studies all go wrong.
The other thing that’s bugging people is of course the possibility of Volvo just going down the drain after Chinese ownership. That seems to be what happened to Ssangyong, look where it is now post-SAIC ownership? On the verge of bankruptcy, recovery plan rejected by creditors, and there is even a lawsuit going on now involving Ssangyong hybrid technology being leaked and transferred illegally to SAIC.
Despite Ssangyong being owned by SAIC, as the Ssangyong hybrid tech was developed using some Korean state grants, the tech is registered as state-owned in Korea and cannot be shared without government approval.
Will something similiar happen to Volvo? Will it be siphoned dry and then left to rot, or does Geely have an actual plan to bring Volvo to new heights? A Geely spokesperson today assured that Volvo would be keeping the rights to its technologies but did say Geely would get the right to use those technologies.
After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history. An avid electronic gadget aficionado as well as big-time coffee lover, he's also the executive producer of the Driven motoring TV programme.
please i beg you ford don't sell volvo to the made in china's
Yes, I love China~~~ Made in China is GOOD GOOD GOOD
Remember the movie—>2012?
All u guys will be using China made product, IN FACT, u are using China made product now!!! hahaha, China conquer the world~!!!
Love Volvo, wanting to buy a S40, but not going to buy it until the ownership been sorted out. Please, not GEELY or any chinese company.
hmmm….soon volvo will be selling at price…..besides that, i don't see how they'll achieve their sales target..n i hope no corners are cut..
Highly unlikely… 1 mil per year by 2013?
If by that logic Geely/Volvo need to be selling roughly 20,800 units
per WEEK.
*1,000,000 / (12×4) = 20,833 cars per week.
Even with 1.25 billion people in China by 2013, more than half
of that don't have buying power, plus not to mention competition from
other car makers.
Even for global market by that time are pushing for greener car
with low cost alternative fuel/hybrid with Honda & Toyota are already
hit the ground running.
For those who keep referring the movie 2012 and Made in China
identia, are you blind or plain ignorant? That movie is such a
propaganda and down right offensive to the People Republic of
China.
If ford sells volvo to china i will never allow myself and my family to buy any volvo or ford in my life, I swear!
Maybe Geely will cease to exists and its all Volvo now. Then they make the cars in China, can bring the cost lower and sell chep too
alex .. you oso chinese la.
No all chinese goods are defective.
but i believe R&D will be severely reduce.
Give me a S40 over a Vios anytime…
Hello… MG Rover bought by Chinese and they are going strong in China. Why not?
The sales can be increase due to introduction of Volvo in China. China middle class ppl are ready to buy more better safety car, why not?
We already knew that China is going to be the next big power, so with the purchase of Volvo. I can predict the next few years time, most of them can get 5 star NCAP easily due to technology transfer. Compare to us, the most 3-4 star after 20 years…
Impossible…
Because 2012 is due date.
Ignore me pls…
@ rexis,
agree with you there, safest or not safest made in China volvo wont survive past 2012
The blatant disregard for safety and quality. Most countries thar require high standards will disallow made in China cars. Other countries that have no standards, well do the math..
In 2012 movie, The Chinese are the savior as they built the Noah arch. You should thank them not bash them for saving man kind & some animals.. Haha..
Hoi spoil la the movie.. I haven't watched yet. Paul…
When Japan starts the electronic industry to challenge the USA brand, they were consider cheap quality. Now they become the leader after WW2. Almost every house hold got Jap products at one time. TV, Washing machine, airconds, etc. That is why Msia once got so many Japanese factories thanks to our open policy to let them invest and create many jobs.
When Taiwan starts the industry in 1980's, they were consider cheap. Now they are the leader in the industry.
When Msia starts the auto industry in the 1980's, they were consider cheap quality, now they still consider cheap after 25 years. Thanks for the close policy, all car investor went to Indonesia, Thailand, and we still proclaim our Proton create more jobs than open policy
When China starts the auto industry, and acquiring branded car to improve their safty and quality, we laugh at people….that's strange. Since when our car is high in safty/quality.
A don't want to improve company laugh at competitors who is improving. Well, I just don't understand…and I feel sad.
Where is our mobile phone made now? Where is our shoes made now?
Wake up Malaysia. It is 11:59 now.
Sekarang masa Asia.. We brought lotus. Geely brought volvo…..
Malaysia Boleh…
I think even though it will be owned by a Chinese Company, quality wise it should'nt be a problem as long as those who hold the R&D & QA positions are maintained. It will be unthinkable and impossible to let any of personnel from Geely to hold those positions at Volvo. Geely should only manage & provide the money where it is needed, and can share the technologies. In short, do just like what Ford did. But Volvo need to be more aggresive and innovative in their product offerings if it were to be on par with the Germans..
I would rather see Proton "DARING" enough buy thr Volvo instead! Imagine what will be look like when Proton uses Volvo safety Technology..then no more worries about high accident ratelah..
1st
I am a Volvo dealer. To most of us, it doesn't matter who the owner of Volvo is, The owner..will amount to nothing more than the financier. As long as the Chinese have the cash, it will be good for volvo so long as the Volvo's sold in the US will be designed, engineered, and manufactured in Seweden, which is what the deal thuis far calls for. Ford has dropped the ball, and left us in limbo hurting the brand.
Who the "sugar daddy" is meaningless to the American market, and a new Chinese one might infuse the company with additional RD and cash, to re-cyle newer models in the line-up sooner.
I say move forward, keep the production rights, and let the Sweed's make em.
there is a huge difference between volvo car dealer and volvo car owner. owner wants quality, u want quantity. so of course u dont care.
Moe said,
November 18, 2009 @ 8:50 pm
I would rather see Proton “DARING” enough buy thr Volvo instead! Imagine what will be look like when Proton uses Volvo safety Technology..then no more worries about high accident ratelah..
that safety wont do much difference for the way malaysian drive, we will set volvo a new accident record muahaha
i don't care if china or proton buys volvo, both will destory the company
chew ban said,
November 19, 2009 @ 3:00 pm
there is a huge difference between volvo car dealer and volvo car owner. owner wants quality, u want quantity. so of course u dont care.
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Rightttttttt…………smart point!
chew ban said,
November 19, 2009 @ 3:02 pm
Moe said,
November 18, 2009 @ 8:50 pm
I would rather see Proton “DARING” enough buy thr Volvo instead! Imagine what will be look like when Proton uses Volvo safety Technology..then no more worries about high accident ratelah..
that safety wont do much difference for the way malaysian drive, we will set volvo a new accident record muahaha
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Double right…..spot on!
volvo for life. hopefully geely wont be changing that philosophy.
I am a Volvo dealer in VA. .I feel that Volvo will thrive either way..What has been the most damaging..has been the uncertainty of Ford's intentions while they neglect the product line in terms of new technology, and resarch and development for the future. IF Geely ends up the new owners, as long as Ford retains the property rights to the technologies, and production of the US made Volvo's stays in Sweden, I think that this could acatually be a good thing long term . Geely intends to fund the development of new models, even larger models to compete with the big body Luxury cars like the Lexus 460, Mercedes and Bmw 7 series,..and Audi A-8, which up till now..Volvo has not had a competitive model in this arena. I think Volvo's best days are ahead of it, with much promise on the horizon. Also, the other bidders for Volvo offering 2.5 billion, (the retired Ford exec with Sweedish funding..), would also provide a welcome opprotunity. What Volvo needs is money and attention..And either buyer will likely bring both while the Sweedish will handle the rest, like they always have by designing and producing the safest, most comfortable, most desireable cars the world over.
For Geely to achieve the Volvo sales target it can only happen with a reduction in price so as to reach more consumers in China and Asia. Chinese companies have rarely been hands off owners. The non critical components going into a Volvo will definitely be Chinese made. How much of a price reduction is simply impossible to tell at the moment. The Chinese have however improved by leaps and bounds in their car making skills over the last 10 years. Perhaps the time has come for the Chinese to teach the world how to make safe, comfortable and cheap cars.