Geely planning to revive Volvo with the help of Chinese market

Article by Christian Andrei, 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:

Comments

Login or Create new account to add a comment!

Recommended

The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 2017
As if seeing the future more than a decade from now, one of the top scientists in the world of robotics and automations is predicting that children born today won’t...
by - January 19, 2017
Ford has just recently unveiled the 2018 Ford Mustang, and as it turned out, the carmaker gave its beloved pony car a facelift. There have been mixed reactions about the...
by - January 19, 2017
The bidding war for one of the only 20 examples -- 21 actually, but the 00 version went to a museum -- of the classically beautiful Lamborghini Reventon built and...
by - January 18, 2017
Bentley once again confirmed its plans to push PHEV into their future lineups. As a matter of fact, the Bentayga SUV will be the first to have the plugin hybrid...
by - January 18, 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