Exclusive: Volvo to sell Chinese-made cars in U.S. this year - execs

West Australian, The ^ | January 11, 2015, 1:59 pm | Norihiko Shirouzu / Reuters

[WhiskeyX]

BEIJING (Reuters) - Volvo Car Group plans to export a Chinese-made midsize sedan this year to the United States, and is starting to weigh the possibility of building a vehicle factory in the United States, people familiar with the Chinese-owned automaker’s plans said.

Both moves would be significant for the auto industry and Volvo’s parent, Zhejiang Geely Holding Group Co [GEELY.UL]. So far, global automakers have chosen not to ship vehicles made in China to the U.S. market in any significant numbers, and efforts by Chinese automakers to export vehicles to the United States have foundered.

Volvo is also behind rivals BMW and Mercedes in establishing production in the United States, which insulates the German brands from currency fluctuations.

[Baynative]

I never knew Volvo was Chinese owned. Where do all the domestic Volvos come from if the import idea has always foundered?

[Eric in the Ozarks]

G’bye, Volvo.
I knew you when...

[Iron Munro]

And what sayeth the UAW?

[Blue Jays]

I have heard (on excellent authority) from a person high on the Volvo corporate ladder that the Zhejiang Geely ownership is reducing component quality while trying to retain the same pricing model.

Chinese owners have already begun to take radical shortcuts on product quality and manufacturing processes. For example, even the quality of the plastics and rubber is being downgraded to reach a "pricepoint" to make each unit slightly more profitable.

My bet is this strategy will bite them in the butt.
From what I have seen of Volvo owners in my region, they tend to go from Volvo, to Volvo, to Volvo with a keen eye on safety (first) followed by reliability. That is just my view as an automotive enthusiast.

[Blue Jays]

"...I never knew Volvo was Chinese owned.
Where do all the domestic Volvos come from if the import idea has always foundered?..."

---

The vast majority of Volvos seen on the road these days were manufactured in Sweden.

[Rodamala]

Well, that ends that marketing campaign.

[nascarnation]

Volvo was bought by Ford in 99 when they were on their acquisition kick (Jag, Land Rover, Aston, etc) and then sold in 2010 after the economy went bad.

[nascarnation]

And what sayeth the UAW?

All praise to Caliph Baraq!

[blueunicorn6]

I think Volvo was making cars in Belgium. Still designed in Sweden, though.

[hlmencken3]

I believe Volvo’s most popular models in the US (S60, XC60) are manufactured in Belgium, but a lot of them are still made in Sweden. I own a Belgian-made Volvo.

[Baynative]

I never knew Volvo was Chinese owned. Where do all the domestic Volvos come from if the import idea has always foundered?

[usconservative]

For example, even the quality of the plastics and rubber is being downgraded to reach a "pricepoint" to make each unit slightly more profitable.

GM, Ford & Chrysler do the same thing.

Know why the Chevrolet Corvette no longer has flip-over headlights? Because the bean-counters at GM said they cost too much, and that by replacing them with embedded headlights GM could shave anywhere from $2500 - $4500 in cost off the vehicle and drive up profits.

(Got that from an Uncle in-law who was a designer for GM when that decision was made. The same "bean counters" also drove the decision to NOT fix the ignition switch problem that's become so famous and cost dozens of people their lives.)

[onedoug]

“øbola Akbar!”

[Eric in the Ozarks]

I owned a very used ‘65 122 sedan.
It was going onto 400,000 miles with one valve job when a goofy woman ran into the back of the car with me in it. I saw her coming in the mirror and tried to stop her by honking the horn. At the last second, she hit the brakes but the impact pushed the Volvo into the car in front of mine. The 122 was squeezed like an accordion.
The motor and 4 speed transmission were salvaged and installed in a Model T street rod...

[Mr Ramsbotham]

I purchase nothing named after a woman’s genitalia.

[sheana]

I have a 2006 Jaguar that is the same way. Ford owned them but some were still manufactured in England. Mine was. You can tell by the VIN number where they were manufactured.

[Blue Jays]

Aside from the fact that nobody WANTS to have pop-up headlamps.
Sometimes cost considerations happen along with a vastly improved design.

Depend on a tiny motor and moving parts for lights to point the right way and illuminate a roadway?
No thanks.

Regardless how that decision was reached, nice bright headlamps behind fixed lenses are far superior.

[Spktyr]

Pop-up lights were discontinued because they screwed with aero when they were operating, they are nightmarish to get them past the newer Fed pedestrian safety testing, and the tech for conformal headlights was finally approved by the Feds. In addition to the lighting being better and the units getting cheaper to make.

[Spktyr]

Volvo has never had a US plant. To date all USDM Volvos have been made in Sweden, Belgium or England. This, as the article says, is about to change.