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Posts Tagged ‘geely news’

Volvo, Geely Create Joint Venture Aimed at EV Market

New deal helps reduce development costs.

by on Jul.21, 2017

Volvo CEO Hakan Samuelsson expects development and production costs to drop with the new joint venture with Geely and Lynk.

With its profits climbing 21.4% in the first half of 2017, Volvo Cars is planning to set up a new joint venture technology company with Geely Holding. The new deal is designed to reduce development and production costs.

Volvo’s venture with the Chinese car group is to “share existing and future technology, deepen industrial synergies and provide the economies of scale that will allow them to more rapidly develop next generation electrified vehicle technology,” the two companies said in a joint statement.

Global Auto News!

Volvo Cars, Geely Auto and Lynk & Co. will share vehicle architecture and engine technologies through cross licensing arrangements of technologies managed by the new joint venture. The new partners will also commonly sourcing components cutting procurement costs. (more…)

Volvo Parent Geely Buys Flying Car Start-up Terrafugia

Flying car race heating up fast.

by on Jul.05, 2017

Looking like the flying car in "Back to the Future," a rendering shows the Terrafugia Transition in flight.

The long-held dream of building a flying car may be coming a big step closer to reality now that Geely, the deep-pocket parent of Volvo Cars has acquired Terrafugia, a start-up launched by a group of MIT alum.

Among an assortment of companies hoping to build flying cars, Terrafugia is one of the furthest along, with the Massachusetts-based firm already going airborne with prototype designs. More importantly, the Terrafugia Transition last year won a critical certification from the Federal Aviation Administration that would make it easier for owners to take to the air.

Take Wing!

Funding from Zhejiang Geely could be what’s needed to push Terrafugia over the top, especially as it now faces a range of competitors hoping to take off with their own flying car and flying taxi concepts. That includes Slovakian start-up AeroMobil and Germany’s Lilium, as well as aerospace giant Airbus. Even Uber wants to get into the act, the car-sharing service recently announcing plans to take its operation airborne with a concept it has dubbed Uber Elevate.

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China’s Geely Buys Controlling Stake in Lotus, Proton

Parent of Volvo plans to revive both struggling operations.

by on May.24, 2017

Lotus hopes the new Evora 400 will help put it back on the map after a series of disasters.

China’s ambitious Zhejiang Geely, already the owner of Volvo Cars, is expanding its automotive portfolio with the acquisition of a controlling share of Britain’s Lotus and Malaysia’s Proton.

The announcement forestalls the bidding war some had forecast for Lotus, the specialty car manufacturer that has run into a devastating series of setbacks in recent years. Proton has had its own challenges, its once dominant share of the Malaysian market collapsing due to cheap import competition.

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Geely is expected to pump significant capital into its two new subsidiaries, much as it has done for Volvo, which it acquired from Ford Motor Co. in 2012. The Swedish brand has gone through a complete makeover since then, winning kudos for new products and experiencing a sharp upturn in sales after a long slump.

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Volvo Exec Reveals IPO is an “Option”

Geely holds final say on potential stock offering.

by on Jan.23, 2017

Volvo Chief Executive Hakan Samuelsson said this weekend that an IPO is "an option" for the Swedish automaker.

Volvo Cars, which is now completely owned by a Chinese investor, is considering a stock offering, the company’s top executive told a German-language business magazine.

Hakan Samuelsson, chief executive of Volvo Cars, said a stock market listing is an “option” for the Swedish carmaker, Germany’s Manager Magazin, according to a Reuters dispatch.

Global Auto News!

Samuelsson told the magazine that there are no current plans for such a move and that it would be up to parent company, Geely Holdings, to decide. Geely, which is based in China, owns 100% of Volvo, which it purchased from the Ford Motor Co. in 2010. (more…)

Volvo, Geely Lay Out Global Export Strategy

Stretched version of new S90 next on export docket.

by on Nov.02, 2016

Volvo and Geely are kicking off an ambitious plan to export more Chinese-built vehicles to the U.S., starting with the S90 built at its Daqing plant.

Volvo Cars and Chinese parent Geely plan to set in motion an aggressive expansion and export plan that could be the first in a wave of new, Chinese-made vehicles earmarked for the U.S. and Europe.

Their strategy is loosely modeled after the multi-brand approach of German giant Volkswagen AG, and will see the creation of a new entry-level brand, Lynk & Co. to anchor Geely’s global ambitions. Volvo is already importing a small number of stretched S60 sedans to the U.S., and will soon add a longer version of its top-line S90. Cars built by other Geely brands are set to follow.

Global Auto News!

“We have a strong manufacturing structure in China and we are geared up for further growth,” Hakan Samuelsson, the CEO of Volvo told reporters during a Shanghai news conference. (more…)

Chinese Automaker GAC Returning to Detroit Auto Show

Move could signal brand is finally ready to enter the U.S. market.

by on May.18, 2016

GAC Group announced it is returning to the Detroit Auto Show next year after a two-year absence.

Guanghzhou, the economic engine as well as the largest city in Southern China, is hoping its state-owned automotive company, the GAC Group, can use its clout in the Chinese market to move on to a larger stage.

That “larger stage” being the U.S. Many are looking at the return to Detroit as a precursor to selling vehicles here. If that happens, GAC will be the first company to do so.

Auto Show News!

“As we look to establish ourselves as a global brand we are optimistic we can gain more momentum following the announcements we will make this coming January in Detroit,” hinted Zeng Qinghong, vice chairman and president of GAC Group. (more…)

China’s Economic Crisis Working to Volvo’s Advantage

Swedish maker gets more control from Chinese parent.

by on Aug.24, 2015

A Volvo S60L sedan rolling down the assembly line at the maker's plant in Chengdu, China.

The financial turmoil in China is actually working to the advantage of Volvo Cars. The Swedish automaker, now owned by China’s Geely, is getting more control of key assets, such as its factory in Chengdu, as part of a deal valued at $356 million.

Volvo Cars executives said the decision to take control of its three joint venture operations in China will accurately reflect its growing presence in the Chinese  market . It also fixes the values of the assets in case of a merger or if they are put up as collateral for a major loan in the future, observers said.

Global Insight!

The downside is that Volvo is being hammered, like the rest of the auto industry, by the worst slowdown in the Chinese automotive market in two decades. The downturn could push Volvo to expand plans to export cars from China to the U.S. and other established markets.

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Volvo Will Build Top-Range S90 Sedan in China

Swedish automaker turning to China as export manufacturing base.

by on Nov.14, 2014

A current Volvo XC90 rolls down the assembly line at the maker's plant in Daqing, China.

The millennium had barely turned before the first Chinese automaker showed up at the Detroit Auto Show promising to begin exports to the U.S. “in a couple years.” A decade later, however, and American motorists are still waiting.

Ironically, it could take a Swedish automaker to finally make that vision come true. Well, make that a Swedish carmaker with a Chinese parent.

The Last Word!

Volvo has already indicated it may import a small number of stretched S60 sedans from its Guangzhou plant to the U.S. Now, however, the maker has confirmed that its planned flagship sedan will be produced at another facility in Daqing for export around the world.

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Volvo May Begin Importing Cars from China in 2015

S60L would target the U.S., while XC90 would be shipped to Russia.

by on Jun.17, 2014

Volvo recently unveiled a plug-in hybrid verson of the S60L at the 2014 Beijing Auto Show.

Volvo may soon become the first major automaker to start selling Chinese-made cars in the United States.

Now owned by Chinese domestic automaker Geely, Volvo is determined to reverse several years of slumping sales, even as it ramps up production at a new factory in Geely’s home town of Chengdu. The Swedish brand is in the midst of rolling out an assortment of new products and, according to a Reuters report, could begin shipping a long-wheelbase version of its S60 sedan to the U.S. by late 2015.

Beyond the Headlines!

Senior Geely and Volvo officials had hinted of their interest in exporting to the U.S. during a visit by TheDetroitBureau.com to the new Volvo Chengdu plant in 2013, but at the time they had not set a hard date on such plans.

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Volvo’s Chinese Fire Drill

New owner Geely hopes to ignite Volvo sales around the world.

by on Jun.21, 2013

Workers assembling a pilot S60L sedan at the new Volvo plant in Chengdu.

The assembly line creeps along at a glacial pace.  For the next few months, the workers at the sprawling plant on the outskirts of the Sichuanese capital of Chengdu will be carefully trained before the first cars actually roll into Chinese showrooms.

But eventually, if all goes according to plan, the factory will be running at a frantic rate.  Long little more than an after-thought in the global luxury market, Volvo Cars has ambitions to challenge more established brands like Audi, BMW and Mercedes-Benz.

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At least, that’s the goal set by Geely which purchased the Swedish maker from Ford Motor Co. three years ago.  The ambitious Chinese conglomerate plans to invest at least $6 billion to rebuild Volvo, completely updating its product line-up and adding new plants to produce them, starting with the factory in Chengdu and another in China’s Northeast industrial belt.

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