Volvo wants to export China-built S60L and XC90 to US and Russia next year

Article by Christian A., on June 18, 2014

Volvo is intending to commence exporting China-built cars to the United States and Russia as early as 2015, a senior Volvo executive told Reuters. With support from Chinese owner Zhejiang Geely Holding Group, Volvo would commence shipping the S60L -- a long-wheel-based version of the S60 -- to the US and the XC90 SUV to Russia as soon as end of 2015.

A site in Chengdu started building the S60L sedan late 2013, and the second site in Daqing is ramping up output of the XC90. The executive said Volvo will eventually export around 10,000 S60Ls and a few thousand XC90s annually, noting that the carmaker believes it could minimize foreign exchange risks by adding China as a production base, despite worries about the quality of China-built products.

The executive said that the US dollar and the Chinese yuan have the “best relationship,” which is more stable than the euro and the dollar. David Ibison, Volvo's global head of media relations, has confirmed plans to start exporting from China, but said that the timing and target markets had yet to be determined.

Volvo chief executive Hakan Samuelsson remarked to Automotive News World Congress in January that vehicles build in China will be shipped to the US "fairly quickly."

Volvo plans to employ two assembly sites in China to export to the US, Russia and possibly other markets like Southeast Asia. The move would make Volvo as the first major carmaker to sell a Chinese-made light vehicle in the US.

Other Chinese companies are observing Geely's strategy for Volvo, which if successful, could become a pattern for their entry into major markets like the US. [source: Reuters]

If you liked the article, share on:

Comments

Recommended

It has been two years since Fiat Chrysler Automobiles started courting suitors for a potential buyout. Naturally, two Chinese automakers namely Guangzhou Automobile Group and Great Wall Motor Company have...
by - September 24, 2017
What is your favourite colour? Is your car finished in the colour that reflects your personality? Nissan recently did a study about the correlation between the colour of a person’s...
by - September 24, 2017
The BMW X2 will be the company’s next entry-level compact crossover to join the lineup. And because of that, it needs to up its game so it makes sense for...
by - September 24, 2017
Just a month ago, Wolfgang Durheimer, the former president of Bugatti, was removed from the company so he could replace Stephan Winkelmann, former Lamborghini CEO and Audi Sport boss as...
by - September 23, 2017
BMW will be launching a new Competition Package especially for the M5’s 2018 model year. While in Frankfurt, Andy Cook, BMW’s product exec has talked with Motor 1 regarding some...
by - September 22, 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