Autoblog

Volvo uncovers widespread cheating by its Chinese dealers

Jonathon Ramsey — Tue, 26 Mar 2013 16:00:00 EST

Filed under: China, Europe, Volvo, Earnings/Financials

According to a report in Reuters, the findings of an internal investigation conducted by Geely-owned Volvo is that its Chinese dealers vastly overreported their sales numbers in 2011, then even more vastly underreported their 2012 sales figures. About "half the dealers" out of the 151 total outlets gamed the system in order to get incentives for reaching volume objectives, falsely recording about 7,000 more units sold than was actually the case. Instead of 47,140 cars sold in China in 2011, the real number should have been 39,871.

Volvo corporate books a sale once it ships a car to a dealer, so that meant there were 7,000 more cars in inventory than there should have been. To restore the balance, the dealers underreported their 2012 sales while they unloaded those extra cars since, naturally, they couldn't claim the sale again. That made it look like sales declined by 11 percent in 2012, even though they actually increased year-on-year. The adjusted sales number for 2012 totalled 45,896.

Volvo has met with its dealers and told them to stop the deceitful practice. The discrepancies weren't so great that the company plans to restate its historic numbers, but from now on, it apparently plans to occasionally check inventory to make sure the numbers match and that it has a true picture of how individual models are selling.

Volvo uncovers widespread cheating by its Chinese dealers originally appeared on Autoblog on Tue, 26 Mar 2013 16:00:00 EST. Please see our terms for use of feeds.

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Volvo agrees to transfer tech to new parent Geely

Jeffrey N. Ross — Tue, 11 Dec 2012 18:31:00 EST

Filed under: China, Technology, Volvo, Geely

Following the acquisition of Volvo by China's Zhejiang Geely Holding Group in 2010, we definitely saw this news coming. The two companies have signed an agreement that will give Chinese automaker Geely access to key technologies developed by Volvo, and in turn, the deal could help the Swedish automaker lower its production costs.

As a part of the "technological cooperation agreements" signed by both companies, Automotive News China reports that Geely will be able to tap Volvo for three much-needed technologies, including the use of a midsize platform, Volvo's proven safety innovations and interior air quality systems. The latter two technologies are important to improve the crashworthiness of Geely's cars, along with helping isolate vehicle occupants from China's often severe air pollution. The report says that Volvo tech will likely be used on a premium car brand that Geely is expected to create.

Volvo, on the other hand, is to benefit from the "local market exploration experience and cost control experience" of Zhejiang Geely Holding Group, which is technical way of saying that Volvo will be able reduce its costs by tapping into Geely's established supply chain.

Volvo agrees to transfer tech to new parent Geely originally appeared on Autoblog on Tue, 11 Dec 2012 18:31:00 EST. Please see our terms for use of feeds.

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Report: Volvo's new chairman wants 7-Series, S-Class rival

Zach Bowman — Wed, 04 Aug 2010 13:31:00 EST

Filed under: Sedan, China, Volvo, Geely, Luxury

2011 Volvo S60 - Click above for high-res image gallery

Geely isn't wasting any time in shaping up its newest acquisition's product line. The Chinese automaker officially completed its deal to purchase Volvo from Ford earlier this week, and already the Swedish brand's new chairman is making noises about a new large luxury sedan to go toe to toe with the likes of the BMW 7 Series and Mercedes-Benz S-Class. Li Shufu, Volvo chairman and co-chair of Geely, said that the brand already competes with luxury German carmakers in most markets, but lacks all of the hardware to do so effectively. To remedy the problem, Li wants to put the rush on a new saloon to take the fight to the Bavarians.

According to the Financial Times, Volvo repeatedly ran into roadblocks when it attempted to develop a large four-door under Ford. Evidently the Blue Oval was concerned about a long-wheelbase Swede nabbing sales from Jaguar - another brand Ford owned at the time. A new Volvo sedan is far from a done deal, though. Li says that the thought of a range-topping sedan is his, and he'll have to convince the company's new board to give it the green light. With an ambitious goal to double Volvo to 600,000 units in five years primarily through growth in large-car loving China, a D-segment player sounds like a good bet - at least for select markets.

Gallery: 2011 Volvo S60

[Source: Financial Times - reg. req.]

Report: Volvo's new chairman wants 7-Series, S-Class rival originally appeared on Autoblog on Wed, 04 Aug 2010 13:31:00 EST. Please see our terms for use of feeds.

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Rumormill: Ford to sell Volvo to Geely for 1.8 billion on Feb. 8

Jonny Lieberman — Tue, 26 Jan 2010 16:31:00 EST

Filed under: China, Europe, Volvo, Rumormill, Geely

See you in Shanghai - click above for high-res image gallery

With all the Saab hullabaloo clogging up the virtual pipes as of late seems that folks have been neglecting the fate of the other fancy Swedish brand purchased by a pipe-dreamin', pie in the sky American car maker whose coffers were overflowing with SUV money. That's right, Ford purchased Volvo in 1999 for $6.45 billion dollars. Many scratched their heads at the time, as Mercury and/or Lincoln certainly could have used a $6 billion infusion. Also, both Mercury and Lincoln compete with Volvo, on paper at least. But, just like General Motors purchased Saab, Ford had their Swedish brand.

In retrospect, probably not the best idea ever hatched.

Proof? Rumor has it that Ford is inking in the details of a sale of Volvo to China's Geely Holding Group Co. for $1.8 billion by February 8. That's a nearly $4.7 billion bath on Ford's part in just eleven years. But here's the thing: according to the same rumor, Ford might let Volvo go to Geely for as little as $1.6 billion. There's a bunch of legal mumbo jumbo still to be worked out (this agreement runs out after one year, that regulatory board must approve X in a timely fashion) but it's looking more and more that Volvo is about to become a Chinese company. We'll keep you posted.

Gallery: Frankfurt 2009: 2010 Volvo C30

[Source: Trading Markets]

Rumormill: Ford to sell Volvo to Geely for 1.8 billion on Feb. 8 originally appeared on Autoblog on Tue, 26 Jan 2010 16:31:00 EST. Please see our terms for use of feeds.

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