By on August 27, 2013

Geely founder and chairman, Li Shufu

Last week we reported the Geely and Volvo, which is owned by the Chinese car company, will be jointly developing cars and there was speculation if those cars would be sold in America. Now Bloomberg reports that some of those cars will indeed be exported to the United States. That would achieve the goal of Geely chairman Li Shufu that he set when Geely first showed product at the 2006 NAIAS in Detroit. At the same time, Volvo dealers in the U.S. and the company’s American sales unit have been trying to get more Swedish made Volvos shipped here.

Gui Shengyue, current CEO of Geely, said in an interview last week, “Our acquisition of Volvo enhanced our image and overseas consumers are seeing us as an international company. Our deliveries in U.S. and Europe will be banking on those jointly developed models.”

Li had early said he wanted to keep the two brands separate lest concerns over Chinese quality taint the Volvo brand. Apparently he’s changed his mind and wants some of Volvo’s safety and luxury cachet to boost Geely’s image in the eyes of global consumers.

Geely still plans on becoming China’s biggest car exporter this year with anticipated exports of 180,000 units, up from just over 100,000 last year. Chery is currently the leading exporter with 184,000 units shipped last year.

Chinese automakers have expanded capacity to the point where they will be able to make 40 million cars and light trucks by 2015. With a projected domestic demand of 27 million, those automakers are looking to export. Gui said that Geely hopes to have 60% of its revenue from overseas sales by 2018.

Meanwhile in North America, Volvo dealers and the Swedish automaker’s U.S. sales division spent a year trying to get the home office to change their mind and bring the V60 station wagon to this market. Previously Volvo had announced that they would not be selling the V60 in this country but now that model will go on sale here next January. Tassos Panas, head of marketing and product development at Volvo Cars of North America, has told the Automotive News that he’ll now start lobbying Volvo brass about bringing the V40 five door to America. Station wagons have long been an important part of the Volvo brand in North America and the current Volvo lineup in the United States does not include a proper station wagon, just the XC 60, 70 and 90 CUVs.

“The V40 is a great small vehicle, and we would love to have it here,” Panas said. “It is not currently in our plan but that does not stop me. I am constantly talking about making that a reality.” The V40 would have to be modified to meet U.S. motor vehicle safety standards. The current V40 is based on a platform of Ford’s from whom Geely bought Volvo. The next generation V40 will likely be one of the jointly developed Geely/Volvo products.

Get the latest TTAC e-Newsletter!

20 Comments on “China’s Geely Will Export Vehicles Jointly Developed With Volvo to North America. U.S. Dealers & Volvo Sales Arm Want V60, V40 Wagons...”

  • avatar

    This is what i never understood. Ford, Hyundai, Kia, etc all can seem to find a market for their compact hatches. Why can’t volvo?

    I find the v40 to be very stylish. I hope it can make it over here.

    • 0 avatar

      Why can’t Volvo? …PRICE. As one of the rare people who purchased a C30 hot hatch (used!) I can tell you their new prices tend to run on the higher end, especially when compared to others in your list: Ford, Hyundai, Kia, heck throw Mazda & Subie in there too. Let’s face it there really isn’t a market for upscale hatches here in the US. Lexus makes the CT 200H which is about the only thing comparable to the V40. The V60 is more like a true/old station wagon type vehicle.

  • avatar

    Currently some Volvo cars are made in Denmark, not Sweden! There was a new one in my local Garage (Indepedent) this past week, it shows Made in Denmark, so I guess Volvo will make them anywhere including China!

    • 0 avatar

      Are you certain that’s what it said? I don’t believe Denmark actually has any volume auto assembly operations in the whole country.

      Currently, all US-market Volvos come from the company’s two plants in Sweden and one in Belgium. They also have two more plants in China, but those cars are not yet exported.

  • avatar

    Won’t find a Chinese-made Volvo anywhere near my driveway. Sorry…I guess we all have lines to cross. But for Joe-Average consumer in America, they will (sadly) not give a second glance at if it is built in China or Sweden (or Denmark!).

    • 0 avatar

      I will never purchase a Chinese car. I’d have to go through ALL Hyundais and every Kia first to get to that level. Which would require all Japanese cars have been destroyed.

      • 0 avatar
        George B

        I have no doubt that Volvo cars will eventually be assembled in China from parts made in China. The real question is if Geely will keep the Swedish product development team or not.

        When I worked for a company that was acquired by Cisco, they changed from a US contract manufacturer to the Taiwanese contract manufacturer Foxconn. The factories were in mainland China. Quality was about the same as the US CM and price was significantly lower. The engineer I worked with in Taiwan spoke reasonably good English and seemed to be technically competent. His counterpart in China had more limited English skills, but did a good job of implementing engineering changes and documenting problems.

        • 0 avatar

          I have a friend that owns a jewelry store, and as of five years ago (give or take), he no longer sells or deals in watches of any kind. The reason? Too many fake Chinese knockoffs out there, along with a number of legitimate brands that have started outsourcing to China. He got tired of having to repair nearly new mechanisms that failed due to too soft metal or shoddy initial assembly and realized that it was just too damn hard to tell a Chinese product from a western one at first glance to be worth the headache.

    • 0 avatar

      I’m with you. I don’t care if it says Mercedes, I Will. Not. Buy. a China-made car. There’s just too many specifications and standards to fudge on something that technically complex. Might I suggest they start building their reputation on simpler things first, like lead-free toys and non-toxic infant formula and pet food. Chinese manufacturing has a long way to go to convince me that they even remotely give a damn about quality.

  • avatar

    “Joe-Average consumer in America”

    I don’t think they’re the target market for Volvos.

    Which is too bad because I have two in my office who didn’t know whether they had a 4 or 6 cyl. in their Camry or Equinox. How likely would they be to even inquire into the provenance of their global hodgepodge of a vehicle?

    • 0 avatar

      Well, if they’re buying new there is still the country of origin/domestic content sticker on the car. That at least has some relevant information, as opposed to the stupid ‘global warming score’ nonsense they stick on the windshield.

      Of course, your friends missed the engine descriptions on the window stickers of their present rides.

  • avatar

    So it begins…

  • avatar

    “Our acquisition of Volvo enhanced our image and overseas consumers are seeing us as an international company. Our deliveries in U.S. and Europe will be banking on those jointly developed models.”

    I’m gonna go buy a Ferrari T-shirt and driving gloves, and I’ll have more credibility amongst Italians.

    Chinese company bought Rover/MG too, did they get more credibility internationally? Nope. Just like Tata isn’t more credible because they bought Jag/LR.

    Nothing will add an air of reliability and luxury cred to Volvo like parts co-developed with their Chinese parent.

  • avatar

    It’s kind of funny how cars is the line in the sand for people when it comes to buying Chinese goods. Baby products, phones, car seats, lunch boxes, cutlery…and pretty much everything else that people and their kids use in their life (and sometimes put in their mouths) is fine. But cars? That’s preposterous!

    I find the people who are most adamantly anti-China are the same ones who will rush to the nearest Walmart and step over their own mother to get something 50 cents cheaper. Supporting American (or wherever you may be from) made goods is a noble cause, and one I support. However people will have to stop playing the price game to do so. You want American products? Well it’s going to cost more. You want a Scandinavian Volvo? Well it’s going to cost more. You want a cheaper Volvo? It’s going to be made in China. You can’t have it both ways, people.

    As for bringing wagons back to North American? Welcome to Obvious Town. That’s the one thing (besides safety) that defines Volvo….they never should’ve taken them out in the first place. My wife’s Volvo v50 will need to be replaced at some point….and I sure as hell aren’t going to buy a CUV or a jacked up XC70.

  • avatar

    Honda already has Cars made in China here in Canada, no one that has them has not noticed anything different about them yet! Most if not all Computers for Home use are made in China as well as most low price Cannon Photo Products, come on USA people get your heads out of the Sand pile!

  • avatar

    Will they lower the price of the Chinese built Volvos?
    If not, why would a buyer not go with a true European brand.

    • 0 avatar

      Evidently because they will not be made in Europe anymore. Price is defined by the market and it will end up simply having a higher margin. I know people who were Volvo fans but do not consider Volvo anymore because of impression that Volvos are now made in China, so it already is happening.

  • avatar

    Look, beauty!

    -if they make it.

Read all comments

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • JD-Shifty: “Brandon is already working hard on making ICE vehicle unprofitable for everyone.”. Are you an...
  • JD-Shifty: “Unfortunately for Toyota, the right spec is usually sitting on a Ford, Chevy, or Ram lot” The...
  • dal20402: Seems like they’re not selling some models yet, at least in my region. I can’t configure the...
  • dal20402: “What image is that?” Futuristic, but in a dystopian way. Blade Runner. Mad Max. This is a...
  • craiger: Why don’t more people comment on the government putting its finger on the scales?

New Car Research

Get a Free Dealer Quote

Who We Are

  • Adam Tonge
  • Bozi Tatarevic
  • Corey Lewis
  • Jo Borras
  • Mark Baruth
  • Ronnie Schreiber