Volvo unveils China investment plans
Published: 25 Feb 11 08:49 CET | Print version
Online: http://www.thelocal.se/32258/20110225/
Swedish carmaker Volvo hopes to become a global luxury brand and turn China into a major manufacturing base by investing $10-$11 billion over the next five years, a report said Friday.
- Volvo opens new China headquarters in Shanghai (25 Jan 11)
- China to be Volvo's 'second home market' (12 Jan 11)
- Sweden's Volvo Cars increases sales in 2010 (7 Jan 11)
The company wants to boost annual sales to 800,000 cars globally by 2020 -- more than double the 373,000 sold last year -- with half of that growth coming from China, the world's biggest auto market, Jacoby said in an interview.
"We're in the middle of a big transition -- a big transformation. We are redefining the brand," Jacoby said ahead of a news conference in Beijing later Friday at which Volvo and Geely will officially announce the strategic plan.
Geely, which bought Volvo from Ford in August for $1.5 billion, said in September it planned to increase Volvo sales to 300,000 cars a year in China alone.
Geely chairman Li Shufu, who is also Volvo chairman, said he wanted three new Volvo plants in China to produce that volume.
Jacoby said however the China target was 200,000 units by 2020, nearly seven times the 30,500 sold last year.
Volvo expects cars to start rolling off the assembly line in Chengdu in early 2013, which will have an initial capacity of 125,000 units a year.
Jacoby said the company was also considering exporting cars from China to the rest of Asia, as well as to North and South America.
In Europe, Volvo plans to increase sales to 380,000 cars a year from the 242,000 it sold last year and more than double sales in the United States to 120,000 units a year.
Volvo hopes markets such as Russia, Brazil and India will drive global sales outside China, the United States and Europe to 100,000 cars a year from the 46,500 it sold last year in those markets.
What do you think? Leave your comment below.
Solna voted best place to live in Sweden
Solna, a suburb just north of Stockholm, is the best place to live in Sweden, according to a new ranking published on Friday by Swedish news magazine Fokus. READ () »
Ikea founder rated fifth richest in the world
Ingrad Kamprad, the founder of Swedish furniture giant Ikea, finished fifth on the Bloomberg Billionaires Index published on Friday, with an estimated fortune of $55.6 billion. READ () »
LinkedIn profile lands Swede with hefty tax bill
A Swedish man is facing a five-million kronor ($750,000) add-on to his tax bill after the authorities took a proper look at his account on the professional networking site LinkedIn. READ () »
India in no rush to open first Ikea store
The first Ikea store to open in India may not be ready for years, with the India head of the Swedish furniture giant prepared to wait until the the perfect location is found for the first of the 25 planned stores. READ () »
H&M CEO to Bangladesh: raise minimum wages
H&M CEO Karl-Johan Persson has urged Bangladesh to raise its minimum wage, adding the Swedish fashion giant is "willing to pay more" in the wake of a garment industry disaster which killed more than 1,100 people. READ () »
Pensioners to recruit ageing Swedish rockers
The Swedish Pensioners Association wants to cast off its "stuffy" image at the Sweden Rock festival, in a recruitment bid to set up a rock music subgroup of new members. READ () »
Sweden plummets in income equality ranking
The living conditions of most Swedes have improved in recent decades, but income inequality is growing rapidly, according to a new OECD report, which saw Sweden drop 14 spots from its first place ranking in 1995. READ () »
Swedish shop hits back: our Converse are real
Swedish retailer Coop has refuted complaints by US sneaker brand Converse that Coop stores are selling unauthorized pirated copies of the iconic footwear. READ () »
Young Swedes forced to live with mum and dad
More than half of Swedes in their twenties are stuck living at home with their parents in major metropolitan areas, with observers blaming politicians for abdicating any responsibility for dealing with lack of housing. READ () »
Converse in bid to ban 'fake' shoes in Sweden
Legendary US sneaker brand Converse has asked a Swedish court for permission to search outlets of Swedish retail chain Coop in a bid to clear near-perfect pirated copies of the iconic shoes off the shelves. READ () »
- 10/05 ABB executive to quit after five-year tenure »
- 10/05 Borg defends critique of strong Swedish krona »
- 08/05 EU green lights Volvo and Dongfeng merger »
- 08/05 Sweden sells toxic Baltic salmon to EU: report »
- 07/05 Swedish app lets 'everyone' write music »
- 07/05 'Invisible thread' can help fight fashion pirates »
- 06/05 The British barber a cut above the rest »
- 06/05 Government locks horns with opposition over jobs »
- 03/05 Spotify snags Swedish music app Tunigo »
- 03/05 India seals Ikea's emerging-market push »
| 18/05 | C++ Developer | Stockholm |
| 18/05 | LCI CoordinatorAker Advantage | Bærum/Tranby |
| 18/05 | Lead Product Designer | Stockholm |
| 18/05 | Lead Product Designer - Artist Experience | Stockholm |
| 18/05 | Lead Product Designer - Mobile | Stockholm |
| 18/05 | Senior Alliance Manager -Wireless Telco | Solna |
| 18/05 | Senior Technical Architect - Stockholm or Copenhagen or Helsinki | Sverige |
| 18/05 | Team Leader ? Customer ServiceKlarna AB | Stockholm, STHM |
| 18/05 | Tender Lead Subsea 7656Aker Advantage | Ågotnes |
| 17/05 | Account Executive - Sweden- Sofware Sales | Stockholm |
- 17/05 Germany cool to France's EU economy plan »
- 17/05 Au pairs rules relax for non-German families »
- 16/05 Germany refuses to slam French economic policy »
- 16/05 Capri-Sun drink wins false advertising award »
- 15/05 Anaemic economy feels winter chill »
- 15/05 ThyssenKrupp bins 3,000 admin jobs »
- 15/05 Pay deal for metal workers averts strike »
- 14/05 First ever strike hits Amazon's German unit »
- 14/05 Volkswagen plans giant car plant in China »
- 13/05 Metal workers enter huge warning strikes »
- LCI Coordinator
- Tender Lead Subsea 7656
- Team Leader ? Customer Service
- C++ Developer
- Lead Product Designer
- Lead Product Designer - Artist Experience
- Lead Product Designer - Mobile
- Senior Alliance Manager -Wireless Telco
- Senior Technical Architect - Stockholm or Copenhagen or Helsinki
- Boutique Manager / Store Manager
- 16/05 Rob for Russian Speaking
- 16/05 pet carrier
- 16/05 Big Sister/ Nanny
- 16/05 I need an apartment any where in or near to Stockholm
- 15/05 English speaking babysitter
- 15/05 Lookinf for track driver job!
- 08:19 Swedish Driving License Books
- 07:27 Thinking about moving to Sweden
- 19:55 Where to buy rubbing alcohol?
- 16:49 Posting parcel from Sweden
- 15:34 Drinking laws in Sweden confused!
- 15:31 In need of a home in Uppsala from August...
- 14:57 Questions Regarding Swedish Literature
- 13:18 What does Lagom really mean?
- 12:26 Does any business owner needs a partnership
- 09:38 Online Shopping (Womens Clothing)
Individuals & Couples - Stockholm Beth Rogerson PhD - Clinical, Marriage & Family Therapist
Click or call 08-5580 1266 now
Create an account with Banc De Binary, the world’s most reputable binary options firm, and start cashing in today! You can start by practicing with our free $50,000 demo account.
www.bbinary.com
Expat counsellor & talk therapist offers counselling for stress, relationship issues, sexuality, culture adjustment & life coaching. Private & confidential. Stockholm or Skype. Contact me today! 08-559 22 636 or
CLICK HERE
Casa Birgitta in Algarve, Portugal. Reduced price in best location. Private estate on white sand beach. All amenities included. Book here today! edward_george1@hotmail.com
Find products and services that are specifically focused on English speakers living in Sweden!
FULL DETAILS
Your comments about this article:
The comments below have not been moderated in advance and are not produced by The Local unless clearly stated. Readers are responsible for the content of their own comments. Comments that breach our terms and conditions will be removed.
http://www.merriam-webster.com/dictionary/carmaker
car·mak·er
noun \ˈkär-ˌmā-kər\
Definition of CARMAKER
: an automobile manufacturer
First Known Use of CARMAKER
1954
but shouldn't it read "Chinese carmaker Volvo"?
The Chinese bought the company. It's only natural that they would build a plant in China and put their own people to work. If it was outsourcing it would be different.
As Sweden has been changing from an industrial based society into a more educated service and consultancy society, the 'old style factory jobs' necessarily disappear.
However,your 'massor unemployment' statement fails to recognise that unemployment in Sweden is below, that is lower than, the EU average.
Oh, and you are not 'giving' Li Shufu anything...he bought the company at a fairly high cost. His plans will revolutionise and expand the Volvo brand and the opportunities for employment in Sweden. I didn't see you and all the other complainers putting your money up to save Volvo!
He needs the European base - and the European manufacturing - as the backbone of his PR drive in China.
But,hey, if being pessimistic keeps you happy, roll on :)
The new Chinese owners want to build Volvo into a new luxury car brand. The world doesn't need another luxury car. Many of the existing luxury car brands are barely surviving.
I sure hope that the quality of the new Volvos built in China is better than the quality of the fake Rolex watches and fake Jeep Cherokees built in China.
The intention to increase market share by these figures indicates the methods that will be employed. Innovation and cutting edge technology is hugely expensive and unsustainable at these production figures. The Chinese will siphon the knowledge from Sweden until they have reached a comfort level and then the brand will cease to exist in Sweden. This is progress. Don't like it? Vote with your wallet next time. It is not the governments problem it is our problem.
The real issue for me is that the western world has already priced itself out of the labor market and now a move is afoot to lower the standard of living in western industrialized nations and somehow restore their manufacturing might. This is also born out by the cries in the US to abolish or at least gut the EPA so as to remove restrictions on industry pollution and environmental damage. So as China becomes more like us we will be going the opposite way. Scary times in which we live.
"The western world has priced itself out of the labor market."
You speak just like a Bilderberg, right out of Switzerland. Or perhaps you champion all Wall Street causes, bankrupting the nearly ended United States, causing the U.S. congress to betray the U.S. citizenry for generations?
More like western world governments (the individual taxpayer in the now broke U.S.) has subsidized the global plutocratic corporatocracy so much so what can Ford do? Send Volvo to China? Remember, Swedish and EU citizens, it took a corrupt U.S. type C corporation, Ford, that has lived on U.S. government handouts for decades, to ruin a great auto maker, then give it to China for a song.
Okay, so, explain to all of us that care about Scandinavia, particularly Sweden, why in the heck BMW, VW, and many of the traditional medium and heavy industries in Germany are doing so well? BMW and Mercedes are throwing those luxury, 8 and 12 cylinder engine equipped autos everywhere, including China? Germany heavily, heavily, heavily regulates and taxes these companies, and they are not leaving Germany while making massive profits.
Also,l don't forget, by PR China's law, anything built in China must include all patent info, so China can copy it and kill the original creator. China's steel is crap, yet now they have the patents that make Swedish steel (not just in my Volvo 240) as well as all unique Swedish metallurgy.
It will be slow, but you'll see Volvo go, someday, soon.
Why did the Sweden feds save Saab and not Volvo? Of the two auto makers, which has employed more folks in Sweden and globally? Which has paid more taxes so y'alll can enjoy why Sweden, like Canada, is the World's envy as we want to live there. Well, some of us do.
Meanwhile, I'll stay with my three Volvo 240s.