Volvo to Build New Car Plant in China, Aims to Sell 200,000 Vehicles in the Chinese Market by 2015

At a press conference held earlier today in Beijing, Chinese-owned Volvo Cars announced plans to build a new plant in the city of Chengdu and continuing investigations for a second factory in Daqing, in north-eastern China. Volvo said that the deal is still pending approval from the Chinese government.

"We regard the Chinese market as the second home market for Volvo Car Corporation and a very important part of the plan to build a successful future for the company," said Stefan Jacoby, President and CEO of Volvo Car Corporation.

The Chengdu assembly plant will only build Volvo cars and have an initial output of around 100,000 cars annually, with production estimated to start during 2013. Volvo said that the decision to expand in China will not affect operations and employment in Europe.

"We will build an entirely new plant in Chengdu and further investigate the opportunities for establishing an additional factory in Daqing," said Jacoby. "Our production in China will, however, not have any impact on decisions affecting capacity utilization of our plants in Sweden and Belgium" says Stefan Jacoby.

The Swedish automaker, which was acquired from Ford by China's Geely in 2010, also announced that Shanghai will serve as Volvo Car China's headquarters and centre for product development, design and sourcing. "Among other priorities, Volvo Car China will also support Volvo Corporation R&D in Sweden regarding the development of electric vehicles and hybrids," the company said in a statement.

"The Volvo Car China Technology Centre in Shanghai will develop into a complete product development organization on an international level," said Freeman Shen, Volvo Car Corporation SVP & China Operations Chairman. "It will have the competence and capacity to work together with the HQ in Sweden, participating in Volvo Car Corporation's work process for developing entirely new models."

Volvo said that it plans to increase its business presence in the China and aims to reach a sales volume of about 200,000 cars a year in the country by 2015. The company's global retail sales during 2010 reached 373,525 (an increase of 11.2 per cent compared to 2009), with only 30,000 of those sold in China.

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Will China's BYD Bring the F3DM to the U.S. or will this be Just Another Broken Promise?

When it comes to making cars, China is king. We’re talking the world’s largest car market, with over a hundred individual marques. So why is it that there are virtually zero Chinese car manufactures selling cars in the U.S. aka the world’s other largest car market?

So far, China’s “Big Four” (well, the four most visible to those outside of China) have made and broken promises of bringing their vehicles to the North American market. Brilliance, Chery, Nanjing and Geely have all backed down from their plans to open dealerships and factories stateside. So far, not a single car from China's major automakers has touched down on U.S. soil outside a motor show.

Senior analyst Bill Visnic of Edmunds.com explains why: “This isn’t computers or cellphones, where you just get into a big-box store. You need some dealerships, and those things are tremendous investments of time and resources. [The Chinese] thought it was going to be a lot easier than it was.”

BYD hopes to change all that. China’s sixth largest automaker provided plug-in hybrid cars to the 2008 Beijing Olympics and now plans on bringing that hybrid, the awkwardly named F3DM, to the U.S.A. for Spring 2012. It still could be an uphill challenge, though.

The fallout from the slump in auto sales after the Global Financial Crisis, the government’s bailouts of two of the Big Three, the liquidation of numerous dealerships and the reduction in hybrid sales that came with the sudden drop in fuel prices is still being felt in much of America’s automotive heartland. Add to that the small market share commanded by hybrid and electric vehicles – just 2.2% worldwide according to JD Power – and BYD may be in over their heads already.

AS Mike Omotoso from JD Power explains:

“Because consumers are wary about electric vehicles and their driving range and batteries, they are even more likely to go with more established companies like G.M. and Nissan. The problem with the Chinese car companies is they are trying to run before they walk.”

Only time will tell if BYD’s U.S. plans end in fruition or failure.

By Tristan Hankins

Source: New York Times

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Geely Drops Five New Models and One Concept Car at Shanghai Auto Show 2011

This past week saw many new production and concept cars making their world premiere at the increasingly important from a global point view, Shanghai Auto 2011. One of the most prominent brands of the show is Geely Auto, the Chinese automaker and owner of Volvo Cars, which displayed 37 vehicles along with its latest R&D achievements.

Headlining the Chinese automaker’s presence at the show is a hybrid concept vehicle called the McCAR and five new models that the company says will soon enter production and include the Gleagle GC6, Gleagle GX6, Gleagle GS-CC Coupe, Emgrand EC6-RV and Englon SC7-RV. Head over the jump for more details and photos.

Geely McCAR

We’re not sure how Geely came up with its name, but the McCAR is a concept study for a sub-compact model with enough space to pack a small foldable electric scooter behind the rear hatch. The urban commuter is designed to be equipped with either a gasoline-electric hybrid or a fully electric powertrain with a 12kW battery, good enough for a driving range of around 150 kilometers or 93 miles.

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Gleagle GC6

The GC6 is an affordable compact-size family sedan with a wheelbase of 2,600mm [168.9-in.] that measures 4,470mm in length [176-in.], 1,730mm in width [68.1-in.], and 1,500mm in height [59.0-in.]. Geely says the four-door model is designed to compete against cars like the new Nissan Sunny, which will be sold as the 2012 Nissan Versa in the States.

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Gleagle GX6

One of Geely’s most interesting proposals is the GX6 small crossover that features a very Kia-like interior design. The GX6 has a 2461mm long wheelbase, and measures 4,120mm long, 1,755mm wide, and 1,600mm tall. The company said the crossover model can be equipped with the firm’s 1.5-liter naturally-aspirated or 1.3-liter turbocharged engines combined with either automatic or manual transmissions.

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Gleagle GS-CC

At the Shanghai Show, Geely launched a coupe-convertible version of its GS Cabrio, called the GS-CC. The two-door model features a two-piece electrically folding hardtop that stows away in the trunk at a push of a button. It is based on the same platform architecture as the GX6 crossover sharing the same 1.5-liter and 1.3-liter Turbo powerplants.

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Emgrand EC6-RV

The Emgrand EC6-RV is small hatchback model with a design that appears to have been influenced by one or more cars from Mini’s lineup. The five-door hatch measures 3,845mm long, 1,763mm wide, and 1,430mm tall, with power coming from either a 1.5-liter naturally-aspirated four, or a 1.3-liter turbocharged engine with a manual or a 7-speed dual-clutch transmission.

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Englon SC7-RV

Being a part owner of Manganese Bronze, the maker of the famous London Black Taxis, Geely thought it would be a good idea to introduce a local version inspired (but not based on) by the original model. The SC7-RV's styling is an odd mix of classic and modern lines with the car measuring 4,390mm in length, 1,820mm in width, and 1,555mm in height. Power comes from a variety of gasoline and diesel engines matted to either manual or automatic gearboxes.

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