Autoblog

Geely announces $11 billion investment in Volvo

Dan Roth — Mon, 09 Apr 2012 10:00:00 EST

Filed under: China, Plants/Manufacturing, Volvo, Earnings/Financials, Geely

Volvo is poised to rapidly inflate its presence in China, and it believes the way forward is through an $11 billion spending plan. "We want to revive Volvo and give the brand its strength back," says Li Shufu, Chairman of Geely Automobile Holdings. Speaking with German magazine Wirtschafts Woche, Shufu disclosed that Geely will put up $11 billion for a new engine factory, increased research and development and technology upgrades. However, Volvo's Per-Ake Froberg tells Reuters that Volvo itself will be providing the funds through borrowing and other means.

No matter where the funding comes from, the investment is meant to aggressively drive the Volvo brand in the Chinese market, where the Swedish brand sold about 50,000 cars last year. Geely wants Volvo to account for 20 percent of the premium car market in just three years(!) with a target of 200,000 vehicles for 2014. It's all part of an ambitious plan to double Volvo sales over the next ten years, and for its stewardship, Geely will get a new premium brand for China that uses Volvo tech and engineering. In addition, the two brands will be combining their purchasing power to get better deals from suppliers and small engine and electric vehicle development will also be shared between Volvo and Geely.

As the last Swedish brand standing, it's heartening to see that Geely has designs on increasing Volvo's sales. Here's hoping the recently voracious appetite for cars in the Chinese market doesn't shortchange American buyers looking for Nordic iron.

Geely announces $11 billion investment in Volvo originally appeared on Autoblog on Mon, 09 Apr 2012 10:00:00 EST. Please see our terms for use of feeds.

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Report: Volvo hiring 1,200 in Europe, adding capacity

Chris Shunk — Thu, 31 Mar 2011 08:31:00 EST

Filed under: China, Europe, Hirings/Firings/Layoffs, Crossover, Volvo

2011 Volvo XC60 R-Design - Click above for high-res image gallery

China's Geely has big plans for its Volvo brand, with a goal of reaching 800,000 global sales per year by 2020 or sooner. To accomplish that feat, the automaker will need to bolster its factories and hire more workers, and Automotive News reports the Swedish automaker plans to do just that.

Volvo has announced that it plans to add 1,200 workers in Europe to help satiate an expected jump in demand. A staggering 900 of those jobs will be of the engineering variety, bolstering the staff of the automaker's research and development center in Sweden. Another 200 will fill spots at the automaker's Ghent, Belgium factory, while the remaining 100 jobs will fill various other positions. Volvo is also looking to build vehicles in China to continue sales growth.

Volvo CEO Stefan Jacoby says of the move, "We are investing in our future. It means that we have to work hard to continue to be cost competitive ... our cars are selling very well globally." Jacoby points out that the automaker is already experiencing "significantly" stronger sales than in 2010, with the XC60 crossover leading the charge.

Gallery: 2011 Volvo XC60 R-Design: Quick Spin

Photos copyright (C)2011 Zach Bowman / AOL

[Source: Automotive News - sub. req.]

Report: Volvo hiring 1,200 in Europe, adding capacity originally appeared on Autoblog on Thu, 31 Mar 2011 08:31:00 EST. Please see our terms for use of feeds.

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Rumormill: Volvo readying five-door hatchback to boost brand's overall sales

Jonathon Ramsey — Mon, 18 Oct 2010 08:59:00 EST

Filed under: Plants/Manufacturing, Volvo

2010 Volvo C30 - Click above for high-res image gallery

Volvo CEO Stefan Jacoby wants to move 800,000 vehicles across the globe per year by 2020, which would more than double last year's sales tally of 350,000 and signal a reversal of sales declines. Jacoby expects about 250,000 of those additional sales to come from its integration into the Chinese market, but the remaining difference will be made up by entering new segments, sharpening the brand's focus and becoming a true luxury brand, not just premium.

It shouldn't be any surprise that the ex-Volkswagen USA head would have in mind a Golf-sized five-door hatch for arrival in 2012. He didn't indicate what platform such a model would be built on, but the C30 would seem like a worthy candidate. If Volvo can come with a sporty hatch and get those buyers to look at the brand as something other than soccer-mom safety, the chance is there. The straight-talking German is working on the product plan, and as for raising the brand cachet he said, "We need to focus on luxury. I don't believe in the word 'premium.'"

Gallery: Frankfurt 2009: 2010 Volvo C30

[Source: eGM Car Tech]

Rumormill: Volvo readying five-door hatchback to boost brand's overall sales originally appeared on Autoblog on Mon, 18 Oct 2010 08:59:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #159 - Reilly Brennan from AOL Autos comes by the podcast clubhouse

Dan Roth — Tue, 29 Dec 2009 16:21:00 EST

Filed under: Podcasts, Hybrid, China, Cadillac, Ford, GM, Toyota, Volvo, Geely

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

For this week between holidays, Reilly Brennan from AOL Autos stops by our clubhouse to join Chris, Sam, and Dan for Episode #159 of the Autoblog Podcast. While it's a question-centric podcast this week, we touch on a few news items before hitting a bunch of your emails. An in-depth chat about the Ford Mustang's new 5.0-liter V8 starts us off, before we turn to an equally pithy chat about Toyota's hybrid braking system concerns, and we briefly consider what Volvo's pending sale to Geely might mean. From there on out, it's listener-interaction central, and we break the two-hour barrier this week as a holiday treat(?) for everyone.

As ever, for exceptional quality 'casts, our colleagues at Joystiq and Engadget do fine work. Let us know what you think of our podcast by dropping us an email at Podcast at Autoblog dot com, reviewing the show in iTunes, filling out our survey, or even leaving us a voicemail on our Google Voice line 734-288-8POD (734-288-8763). Thanks for listening!

Continue reading Autoblog Podcast #159 - Reilly Brennan from AOL Autos comes by the podcast clubhouse

Autoblog Podcast #159 - Reilly Brennan from AOL Autos comes by the podcast clubhouse originally appeared on Autoblog on Tue, 29 Dec 2009 16:21:00 EST. Please see our terms for use of feeds.

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Volvo COO sees company's less eye-catching lineup as an advantage in these times

Jeremy Korzeniewski — Thu, 26 Mar 2009 19:29:00 EST

Filed under: Volvo

Click above for a high-res image gallery of the 2010 Volvo XC60

For years, Volvo has been pushing harder and harder to attract buyers of rival luxury automakers like BMW, Audi and Mercedes-Benz by slowly ditching its stodgy, safe and reliable reputation in favor of a more premium, upmarket marketing position. Now that money around the world is getting tighter, even those who can afford to shop in the fancy European section may be looking for a good deal.

Volvo's Chief Operating Officer Stephen Armstrong believes Volvo's lack of flashiness makes it more "socially acceptable" and might be perfect for today's market, saying, "We have a real opportunity for Volvo with respect to premium positioning. As people cut back, it becomes a little less acceptable to flaunt your money."

That's all fine and dandy, but the fact remains that Volvo is currently faring at least as poorly as its competitors in these times of financial uncertainty. We'll just have to wait and see how the introduction of the new XC60, along with the presence of possible Chinese bidders for the brand, changes things over the next few months.

Gallery: 2009 Volvo XC60

[Source: Automotive News]

Volvo COO sees company's less eye-catching lineup as an advantage in these times originally appeared on Autoblog on Thu, 26 Mar 2009 19:29:00 EST. Please see our terms for use of feeds.

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Volvo to cut 4,000 jobs worldwide

Jeremy Korzeniewski — Wed, 08 Oct 2008 17:31:00 EST

Filed under: Hirings/Firings/Layoffs, Volvo

Times are tough for Sweden's safest automaker. Ford-owned Volvo has seen its sales decline by alarming amounts so far this year. In fact, in last month's By The Numbers post, the automaker's 51.8% drop in U.S. sales trailed only HUMMER's stratospheric plunge. Fewer cars produced means fewer workers are needed, and with numbers like that, it's no wonder that Volvo needs to cut the rank and file a bit. Volvo announced today that 4,000 jobs worldwide will be cut. That figure includes some 2,230 employees at Volvo Car Corporation in Gothenburg, Sweden as well as 1,300 people, including contractors, outside its home country. After all is said and done, the total number of job cuts, including those already announced before today, will be about 6,000. The sober-sounding press release is pasted after the break.

[Source: Volvo]

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Volvo to cut 4,000 jobs worldwide originally appeared on Autoblog on Wed, 08 Oct 2008 17:31:00 EST. Please see our terms for use of feeds.

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Ford to make fewer Volvos, possibly in prep for sale

Jonathon Ramsey — Tue, 20 May 2008 10:58:00 EST

Filed under: Plants/Manufacturing, Ford, Volvo, Earnings/Financials

Volvo, once the success story in Ford's Premier Automotive Group, has hit choppy waters. And according to Wall Street Journal insiders, Ford is preparing to treat the Swedish automaker the same way it did the English ones: slap some floaties on it and keep the brand bobbing long enough to sell it.

Volvo made $94 million in profit in Q1 of 2007, but lost $151 million in Q1 of this year. In total, over the past two years, the once smiling Swede has lost $1.7 billion, part of which is due to exchange rates, and another is due to selling fewer cars. To combat the decline, Volvo is shedding up to a third of its work force at one European plant, and cutting back on production at another. As you would suspect, both of those plants make the largest vehicles in Volvo's lineup.

A couple of weeks ago, Ford was intriguingly -- or deceitfully -- still in "Volvo's not for sale" mode. Now it appears that Mulally has admitted to some Ford execs that Volvo is about to wear the "Needs a Caring Home" sign. Jerry York, the right hand man of Kirk Kerkorian, maintains that Volvo will probably be sold in 18 months. The way things look now, we'd be surprised if it took that long.

[Source: Wall Street Journal via Yahoo!]

Ford to make fewer Volvos, possibly in prep for sale originally appeared on Autoblog on Tue, 20 May 2008 10:58:00 EST. Please see our terms for use of feeds.

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