Volvo may open assembly site in the United States

Article by Christian A., on January 13, 2015

Volvo Car Corp. mulls building an assembly site in the United States and well as importing a "strategic flagship" sedan from China, people privy with the carmaker’s plans told Reuters. The strategic flagship car would follow the S60L midsize sedan that would be sold in the US this year.

Volvo has been behind BMW AG and Mercedes-Benz in establishing US production, which has allowed the German brands to be insulated in case of currency fluctuations. Executives at Volvo’s parent, Zhejiang Geely Holding Group Co., told Reuters that the carmaker may also export the large strategic flagship sedan underpinned by a newly developed platform called "scalable platform architecture.”

This sedan would be exported from China in addition to the S60L. The executives disclosed that the "strategic flagship" car for export to the US might be dubbed as the S90. The new S90 would be the second vehicle underpinned by Volvo’s new vehicle platform, next to the redesigned XC90 SUV.

Volvo disclosed in late 2013 that it would build “a large premium sedan” underpinned by the new architecture at a new site in Daqing, China.

With those moves, Volvo is plotting to revive its sales in the US, where it sold 8-percent less vehicles in 2014 to just 56,366 units whereas volume in China jumped 33 percent to 81,221.

They are part of larger plan to turn around strategy Volvo, which seen its sales went below half-million vehicles. Its recent focus on China has allowed Volvo to hike its global sales by 9 percent to 465,866 vehicles in 2014.

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