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

The first time Porsche revealed the Panamera Sport Turismo to the public was during the 2017 Geneva Motor Show earlier this year. And now it has already entered production, and...
by - July 27, 2017
Autocar has got some juicy rumours for us regarding a new McLaren hypercar. The British publication has inside sources claiming that a new model will be added to the Ultimate...
by - July 27, 2017
Ferrari has recently launched the New Power15 extended warranty program. The company developed this program in response to the notion that supercars are very expensive to maintain. Truth be told,...
by - July 27, 2017
The UK it seems is about to take the same road as its neighbouring country France by banning sales of petrol and diesel vehicles beginning 2040. As reported by The...
by - July 27, 2017
What has BMW been up to lately? The company recently announced that they are currently focusing on electrification, and so far, their new architecture will enable “electrification of every model...
by - July 26, 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