Volvo Cars doesn’t plan on producing a low-cost model that’s designed specifically for the Chinese market, CEO Stefan Jacoby told Austrian newspaper Salzburger Nachtrichten.
Volvo Cars, which is owned by Chinese group Geely Automobile, said that it is a “global premium seller” and so it means that its products get a global customer base.
He clarified that these products may be used to get specific models for certain markets. Typically, compact cars are a hit with European customers.
Meanwhile, European customers seek more compact cars while the Chinese and American customers prefer bigger models. Jacoby said that he expects to see “further growth in 2011.”
Last year, Porsche made a profit for the first time since 2005. In the interview, Jacoby said that Volvo will be able to sell more than 373,500 units (the 2010 sales figure).
Jacob, a former North American executive of German carmaker Volkswagen AG, said that Volvo's Chinese owners have fostered "professional and deep" cooperation and that their involvement would boost the Volvo brand.
Geely's purchase of Ford Motor Co's Volvo unit last year marked China's biggest acquisition of a foreign car maker.