Guess Where The Other Volvo Factory Will Be. You Are Getting Close ...

Bertel Schmitt
by Bertel Schmitt

Stefan Jacoby, CEO of bought-by-Geely Volvo needs to bring down the cost of Volvo’s European-made cars.

So where will the new Volvo factories be? You have two tries.

China? Check. Volvo might actually open three factories in China, Stefan Jacoby said recently in Stockholm. Details should be forthcoming within the next weeks.

Ok, now for another country …

Would you have guessed the U.S. of A? “Our first priority is to extend production to China,” Jacoby said. “The U.S. is also a priority.” The Freep says that Jacoby has experience in building a plant in the U.S. The former head of VWoA “oversaw site selection and construction of a $1-billion assembly plant outside Chattanooga, Tenn.”

Who would have thunk it? The Chinese buy Volvo, and jobs come to America. As a second alternative.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

More by Bertel Schmitt

Comments
Join the conversation
4 of 7 comments
  • Twotone Twotone on Nov 18, 2010

    I'd let the markets tell me where to build car factories -- China, Russia, India, Brazil, USA, etc. Twotone

  • Pete Zaitcev Pete Zaitcev on Nov 18, 2010

    I heard of a few companies moving from Europe to southern states like NC, TN. Some are not even that big, make various specialist bulk stuff like weird textiles etc. Chinese are hardly pioneers in this. Keep in mind that although an American worker is expensive per hour, he is very productive when using the right equipment and not hamstrung by opressive unions. Thus the cost per unit of output is competitive.

  • Blowfish Blowfish on Nov 18, 2010

    Keep in mind that although an American worker is expensive per hour, he is very productive when using the right equipment and not hamstrung by opressive unions. Thus the cost per unit of output is competitive. and the way US$ is sinking its going to be a win win too. cheaper volvo cars for N America, spend some of the US treasury IOUs convert them to brick & mortar, good use rather than keep holding them until its worthless.

  • John Horner John Horner on Nov 18, 2010

    I'm not sure about recently, but I do know that historically the US was Volvo's largest market. Had they expanded their Canadian operation instead of closing it down (and moving production to Belgium!!!) years ago they might not have gone through nearly the hard times they have.

    Build it where you sell it, given that you sell decent quantities, is generally a fine idea.

Next