Geely planning to revive Volvo with the help of Chinese market

Article by Christian A., on August 25, 2010

Acquiring the Volvo brand is both a huge challenge and a wonderful opportunity. Li Shufu, the chairman of China's Zhejiang Geely Holding Group, has a lot on his plate as he attempts to make the Volvo brand profitable once again. But definitely, a huge plus that Li will get is the opportunity to use Volvo to boost sales in China, which has replaced the US as the world's largest car market.

Major carmakers, such as General Motors Co. and Toyota Motor Corp., have been glad to have the huge market in China during the financial downturn.

John Zeng, an analyst with IHS Global Insight, said that China is the "crucial market' as Li attempts to turn around Volvo.

Zeng said that if Li can make Volvo profitable in China then that would make up for the losses in European operations and keep them running. Currently, the Europe and the US market are not feasible to revive Volvo.

Geely aims to follow in the global success of its Asian neighbors and to one day, be ranked alongside Japanese and Korean players like Toyota, Honda Motor Co. and Hyundai Motor Co.

Analysts said that Geely, which is known more for producing compact and affordable cars, will benefit from owning a global brand like Volvo in order to build up its reputation in China. It also wants to catch up with its larger state-owned rivals, who have affiliated with GM and Volkswagen.

Topics: volvo, geely, china

If you liked the article, share on:

Pin It

Comments

Recommended

It’s quite safe to say that this generation marks the rise of the electric cars. For the past few years, automakers have been very busy trying to find the perfect...
by - March 28, 2017
Want to go for a sportier look, but don’t have enough cash to burn? Good news for future Ford Edge buyers, as the 2018 model year will have an optional...
by - March 28, 2017
Audi refreshes its portfolio as its go-faster division officially announces the release of six new RS models by the end of 2018. That’s quite a huge number of cars to...
by - March 28, 2017
Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries