If sold, Volvo may replace Audi as Chinese state officials’ car of choice

Article by Christian A., on August 26, 2010

As soon as Zhejiang Geely Holding Group seals the deal to purchase Ford Motor Co.'s Volvo unit, the Audi A6's standing as Chinese state officials' car of choice could be threatened.

Li Shufu, the head of Geely, hopes to successfully acquire Volvo for up to $2 billion. Li, 47 years old, has been compared to Henry Ford because of his ambition to create a mass manufacturer of affordable cars.

Already, Li is planning a factory in Beijing that can produce the same number of Volvos in China as in foreign countries.

John Zeng, an analyst with IHS Global Insight, an industry consultancy, said that Li Shufu bet huge and the stakes are extremely high. However, Zeng thinks that he could win since he can rely on the China market to turn Volvo around.

Last year, China replaced the United States as the top auto market. In fact, China is now a key source of business for global carmakers as well as domestic newbies, which are looking for global acquisitions in order to get ahead.

However, Chinese carmakers are likely to have a tougher time than the Japanese and Korean companies despite an expanding home market and a supportive government to take domestic cars to the global market.

Topics: volvo, audi, china

If you liked the article, share on:

Comments

Recommended

For many years, Lamborghini has always relied on the use of large and powerful engines including the V10 and the V12. In fact, the company’s very first engine in the...
by - October 17, 2017
You can now get the Opel Crossland X that’s LPG-powered if you are not a fan of diesel. Recently, the company released their version of the Peugeot 2008 equipped with...
by - October 17, 2017
As seasons change, temperatures rise and fall. The changes affect our preferences when it comes to driving cars. Therefore, Aston Martin introduces the new DB11 Volante or convertible, and it...
by - October 16, 2017
Aston Martin may be known for building many of the stylish Bond cars we see on the big screen but nobody really knew how it can get super aggressive when...
by - October 16, 2017
Today, manual transmissions have become rare in mainstream cars and are more commonly found in performance cars within the $20,000 to $40,000 range. However, the selection of affordable, three-pedal performance...
by - October 16, 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