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:

Pin It

Comments

Recommended

Reddit user Jdubbswrx spotted a rather deceptive move coming from the German automotive manufacturer Audi. He posted an image of the supposed exhaust of the new 2018 Audi SQ5 sporting...
by - March 29, 2017
McLaren car owners will be thanking the automotive company as it has decided to roll out new goodies for the 540C, 570S and 570GT sports car line-up. From this series...
by - March 29, 2017
On July 11, Audi is set to reveal its flagship luxury sedan, the all new A8. And at this moment, none of us are sure how this model will look....
by - March 29, 2017
The recent Porsche 911 is definitely considered one of the most elite sports car to grace the roads worldwide. The task of producing its successor is challenging enough for the...
by - March 29, 2017
British startup Zenos, which entered bankruptcy administration earlier this year is now back in business. The Norfolk-based sports car manufacturer was bought by a consortium of investors headed by AC...
by - March 29, 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