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China to be Volvo's 'second home market'

China to be Volvo's 'second home market'

Published: 12 Jan 2011 07:58 GMT+01:00
Updated: 12 Jan 2011 07:58 GMT+01:00

"I would say (China will be the No. 1 market) in the next couple of years -- hopefully one year," Volvo Car China chairman Freeman Shen told the Reuters news agency from the Detroit auto show.

Last week, Volvo announced that global sales grew by 11.2 percent in 2010, due in part to a 36.2 percent increase in sales in the Chinese market.

However, overall sales in Volvo’s home market of Sweden remained about twice as high as sales in China.

With Geely CEO Li Shufu taking over as Volvo’s chairman in July and Geely’s takeover of the Swedish brand from US-based Ford Motor Company in August, China is seen as an increasingly important part of Volvo’s future success.

"We are looking at a strategy of making China a second home market. Today we mainly only have one home market, in Sweden," Shen told Reuters.

Speaking in December, Volvo Cars CEO Stefan Jacoby said Volvo will soon announce plans regarding the opening of its first plant in China, adding that he expected Volvo cars to start rolling off the assembly line in China within two years.

The Local/dl (news@thelocal.se)

Your comments about this article

09:40 January 12, 2011 by bob3000
Should be interesting;

GNI (per capita 2010)

# 5 United States: $33,070.30 per person

# 8 Sweden: $25,105.50 per person

# 108 China: $865.03 per person

Volvo Cars sales during 2009 (2008).[1]

[edit]By market

1. United States 61,426 (73,078)

2. Sweden 41,826 (47,775)

3. United Kingdom 34,371 (33,341)

4. Germany 25,221 (27,053)

5. China 22,405 (12,640)

6. Italy 15,896 (16,653)

7. Netherlands 14,035 (16,742)

8. Belgium 13,223 (12,872)

9. France 11,596 (11,745)

10. Spain 8,306 (9,876)

Others: 86,503 (112,522)
10:02 January 12, 2011 by duogrn
what's the surprise?
10:09 January 12, 2011 by aaww
that's where the market is, check out the latest trend on the Detroit auto show...... it's all about China.

@bob3000

please verify your figure, looks too bad if US GNI is standing on 33,000 USD level
16:13 January 12, 2011 by anticommie
Then they will move the manufacturing to China also, why pay a bunch of lazy swedes way to much when they can get slave labor at home. Kiss them jobs good bye
16:45 January 12, 2011 by bob3000
@aaww

GNI

http://www.nationmaster.com/graph/eco_gro_nat_inc_percap-gross-national-income-per-capita

Sales

http://en.wikipedia.org/wiki/Volvo_Cars
20:24 January 12, 2011 by mikmak
bob: what's the variance on those numbers?
20:45 January 12, 2011 by Ivan Juric
Will the Chinese be driving Volvos on their way to Tibet to commit geoncide.
23:33 January 12, 2011 by aaww
@bob3000

there are obvious errors in the information you have provided, it is impossible for me to accept that singapore has lower GNI than most of Europe.

please refer to wikipedia:

http://en.wikipedia.org/wiki/List_of_countries_by_GNI_(PPP)_per_capita
12:51 January 13, 2011 by bob3000
@mikmak:

What? Email the respective sites and question their data.

@aaww

I simply thought it was an interesting statement from Shen - when you compare the GNI of markets #1 (US) & 2 (Sweden) - and China.

Of course there are many more people in China, but I could only find data on Income between $6 000 - $25 000 for China, not greater than $25 000.

It is not my information, never claimed it was - I simply provided 2 links with data, as requested - regardless of your acceptance of them - they are available on the internet.

There are also other sources of data. Knock yourself out.

Exactly what point are you trying to make? If you dispute them - email the source websites and have them validate the data for yourself.
15:08 January 13, 2011 by linuxcity
@bob3000

You forgot to count in those communists who doesn't need to pay for stuff with their own money, but the tax payers. And there are around 24 million of them... 3 times the population of Sweden
18:36 January 13, 2011 by bob3000
@linuxcity

I'm sorry I don't understand you comment.

@aaww

I find it peculiar that you are quibbling over GNI data.

Simple maths will give you these targets;

In comparison to their US market, circa 60 000 cars over 12 months is 5 000 cars per month, across 230 dealers, that's only 22-ish cars per dealership.

In comparison to the Swedish market, circa 40 000 cars over 12 months is approx 3 333 cars per month, across 230 dealers, that's only 15-ish cars per dealership.

If you have taken "interesting" as a negative comment - it says more about you...and I wonder what your motivations for commenting are. I have no vested interest in whether Volvo succeeds or fails. Success can only be a benefit for VG (in the short to medium term at least).

If Volvo can sell an additional 40 000 - 60 000 cars in 20111, it cannot be bad.

As I said, it will be interesting.
14:45 March 7, 2011 by bitko
I'm sticking with my Volvo 240s.

You can thank Ford for killing Volvo. Why Volvo AB spun off Volvo Cars AB to Ford for 6.x billion $ in 1997 (1998?), then Ford gives it away to Geely for 1.6 billion $ ten years later, is curious.

Sweden saved Saab. Why not Volvo, a larger and more lucrative auto maker in tax revenues to Sweden generation over generation. At least you still have Volvo AB, thankfully.

A perfect example of the treacherous U.S. corporation; serving the taxpayers first - before the paying customer and the employee.
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