Volvo plans to upgrade lineup to attract Chinese luxury buyers

Article by Anita Panait, on September 10, 2013

Volvo Car Group is planning to upgrade its vehicle lineup as it begins its bid to entice Chinese buyers away from premium carmakers like Audi and BMW. Volvo chief executive Hakan Samuelsson said that the carmaker is adding three sites in China this year and in 2014 in order to support its growth in the country.

Volvo has been struggling to restore earnings since Chinese company Zhejiang Geely Holding Group Co. bought it from Ford in 2010 for $1.8 billion. He said that Volvo is taking on a premium strategy, since they “only have a future as a high-price car producer." Volvo aims to hit breakeven at an operating level this year, boosted by new models enticing new customers.

The carmaker posted a SEK577-million ($87.1 million) loss before interest and taxes in the first half of 2013, no thanks to lower volume declines and price cuts, a sharp contrast to a SEK349 million profit in the same period in 2013.

Samuelsson expects sales to gain in 2014 as deliveries are seen to remain flat this year from the 421,951 vehicles sold in 2012. Volvo posted a 40-percent surge in sales in China in the first eight months of 2013, with significant growth posted in July and August.

The carmaker’s CEO quipped that Volvo does not need funding from its parent, while it is mulling a bond sale to finance projects like its new scalable product architecture.

Topics: volvo, china

If you liked the article, share on:

Comments

Recommended

Hyundai is introducing a new 2018 Accent that is not only wider and longer, but is now also sporting a new look that is more serious than the previous model....
by - February 20, 2017
Fans and enthusiasts of the BMW M2 in the United States could now rejoice. This comes as their favorite BMW M2 is getting a limited edition version as prepped by...
by - February 20, 2017
Carmakers usually leave us thirsty for information on whether they would introduce a new, refreshed or face-lifted vehicle and on when they intend to launch it. There are reasons for...
by - February 20, 2017
Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 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