When Geely bought Volvo off Ford so feared, many to the development and manufacture of future Volvo cars would be made in China. It has not been – not yet. But the new strategy that Volvo unveiled in conjunction with the world premiere of the most exclusive S90 we’ve seen indicates that China is the country number one in the Volvo thinking production.
The three factories in China, its model series. The 90 series in Daqing, 60-series in Chengdu and 40-series in Luqiao, the latter shall also build new Lynk&co.-cars, which is natural given the common platform of CMA.
the S90 will be moved to the to begin with
to begin with it is then-version of the 90 series, the S90, which moved from Europe to China but in the long term, of course, the same factory to build the XC90, and the V90.
To build the most exclusive 90-car in China shows two things:
1) Volvo knows that it is in China the type of car sells the most.
2) Volvo wants to show the world that the production in China, the quality is up to par.
Together with Geely launch of Lynk&co. vehicles in Europe from 2018, is Geely’s strategy clear.
Geely intends to break new ground and show that China is a country that can build and develop cars for the rest of the world. Both Geely and Volvo plan to build in China for export to Europe and the united states.
Depending on the trade agreements and customs duties as it may then be necessary with the continued production in the united states and Europe. Not the other way around as it had been earlier.
Volvo went in many ways, the first with its new 90-serieplattform SPA and the Volvo again takes the lead as regards production for export in China.
Not bleak for the Swedish automotive industry
With the new strategy places the Volvo also has its factories in Belgium and Sweden in an obvious place: the Cars that are being built where the future is intended first and foremost for Europe.
this does not necessarily mean that the Torslanda plant likely to be shut down or even be scaled down in capacity.
But it means that the Torslanda plant’s future is determined by the sales in Sweden and Europe. Volvo want to expand and after a new sales record last year and a further one in years needed more capacity. But the expansion is not in Sweden – it takes place in China.
Now is not all bleak for the Swedish automotive industry. Volvo’s new strategy means, in substance, no change.
the Swedish authorities need to tighten up
Sweden is To compete, it’s about this:
1) Sharpen engineering. To Geely chose to put the CEVT in Gothenburg show that knowledge means something.
2) the Swedish authorities need to understand what is important for a company like Geely. I have heard scary stories about how difficult Geely and CEVT had it in Gothenburg and how they feel more or less discouraged by local authorities. Compare it with how the Volvo was received in South Carolina when the plant would be built. Volvo received preferential loans, and all possible assistance to its establishment.
In Gothenburg, it was most of closed doors and painful processes for all of the hundreds of migrant engineers would start working at CEVT.
Things like that need to be improved. Now.