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Volvo opens new China headquarters in Shanghai
Volvo China Chairman Freeman Shen

Volvo opens new China headquarters in Shanghai

Published: 25 Jan 2011 11:16 GMT+01:00
Updated: 25 Jan 2011 11:16 GMT+01:00

Volvo President and CEO Stefan Jacoby said the company's Chinese presence had gone from being a sales arm to a full-fledged research and manufacturing operation within months.

"I am glad to see the China operations team has been set up and has made a huge progress over the last few months, expanding our business presence in China," Jacoby said in a company statement.

The new headquarters on Shanghai's northern outskirts will also include a technology development centre, the company said. Volvo officials declined to say how much the carmaker was investing in the facilities.

Chinese automaker Geely bought Volvo from Ford in August 2010 for $1.5 billion (9.85 billion kronor) and the Chinese carmaker aims to sell 800,000 Volvos in 2020, including 300,000 in China.

In 2010, Volvo sold 373,525 vehicles worldwide, with sales rising by 29 percent in northern Europe and 36 percent in China. Sales dropped 12 percent in the US to 53,952 vehicles, although it remained Volvo's largest market.

China's overall auto sales rose more than 32 percent to 18.06 million units last year following a banner year in 2009, in which the country overtook the US as the world's top market.

"China is the world's largest auto market. To capture the business growth and build Volvo Cars [into] an admired brand in China, [the company] has been strengthening the leadership team in China," senior vice president and Volvo China Chairman Freeman Shen said in the statement.

"Our goal is to build Volvo cars one of the most admired luxury car brands," he added.

AFP/The Local (news@thelocal.se)

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Your comments about this article

13:37 January 25, 2011 by Eagle63
Sad that a great company like Volvo (cars) has been squandered to the Chinese, helping China to become ever more dominant over the west and the world in the future. Its even more sad if you think its a Swedish company; Sweden generaly has higher moral standards than China has. Was this Political Correctnes at its worst...?

No doubt, I'll keep on buying/driving Saabs in the future....
16:04 January 25, 2011 by apelsin000
to #1

Just buy whichever you want, save your craps
20:37 January 25, 2011 by mojofat
Well the gears are in motion now. No way the chinese are going to put up with swedish shenanigans like workers rights, livable salary, and all that nonsense. Not when they can move the whole kitty to china and crank out volvos for pennies on the dollar.
21:50 January 25, 2011 by lapua338
Who's going to purchase a Volvo manufactured in China?

Maybe the Chinese and others but not me!

Would you buy a Gränsfors Bruks axe manufactured in Taiwan?

I don't think so!
05:09 January 26, 2011 by skyscraper
Chinese occupation is spreading on world market...don't cry guys..this is called business..if chinese wouldn't buy it how could Volvo save its ass..u should be thankful to them..
06:25 January 26, 2011 by muscle

Yes the same was said when the Japs started making cars and people laughed that who would buy those over German or other country made cars!

If you can and you DO use the high end computers/notebooks, cell phones, cameras, almost all of the damn electronic items. Then I guess you may start trying the chinese volvo as well :)

Bewarned, perhaps more than 60 percent of Swedish Volvo is already using chinese made parts :)
07:07 January 26, 2011 by Thebinary1
Up with Corporate Communism!

Down with Sweden and Democracy! Yay!
12:33 January 26, 2011 by apelsin000

you are exactly wrong, as the approval of ECFA "Economic Cooperation Framework Agreement", now it is actually a free trade region between the two sides(mainland china, taiwan). I understand and respect you for thinking as a patriot, however if that is your understand about world economy, i think that is pretty naive. Ok, well, do remember to buy a polically correct car, besides, stopping buy mac, iphone,.... they are all made in China, you will see how you will hurt no one but yourself
14:25 January 26, 2011 by lapua338
Sorry guys, I've never purchased Apple icrap or anything else manufactured outside Europe or North America.
21:26 January 26, 2011 by krattan
So how are you typing on this forum then? Almost all semiconductor components are manufactured in Asia. Try open that device you are using and check for yourself.
22:54 January 26, 2011 by lapua338
That's not the point... I expect semiconductors to be manufactured in South Korea, etc, but not a Volvo manufactured in China.

There are many factors that distinguish brands from their competitors. Effective brand management generally increases the perceived value of a product line or brand over time. A Volvo manufactured in China for the European market? I don't think so!

It's not a positive association! It takes decades to build and manage a reputation for engineering excellence, reliability and safety. It's brand destruction!
00:13 January 28, 2011 by hongii
Don't worry, the main target market is not the European market, so you don't even worry about how to build a good brand name through decades etc.

China will be the main market, Geely will build Volvo in China and sell Chinese consumers.
16:07 January 28, 2011 by mojofat
Exactly. Sweden is a rounding error in comparison to other marketplaces around the world. China will build and sell Volvos in China and surrounding Asia...perhaps America too since no one really care. You won't have to worry about those chinese volvos coming here because the business heads at China Volvo will see very quickly that it's not worth the cost of shipping to sell a couple thousand of them (at most) here a year. Plus, since all the factory employees will be out of work by then there won't be anyone with any money to buy them.
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