Photo: Catalin Garmacea
This just in from the peeps over at Volvo Cars – the Swedish manufacturer bought 50 percent of its joint ventures in China for 2.2 billion Swedish kronor. That translates to $256 million at current exchange rates, which isn't a lot of green dollar bills considering that Volvo Cars took control of its three joint ventures in the hottest new car market in the world.
Sure, demand for new cars in China dropped a little compared to the first eight months of 2014, but this is an investment that will benefit the company in the long run. Acquiring 50 percent (and control) of the Chengdu and Daqing manufacturing facilities, along with the engine plant in Zhangjiakou and the Shanghai-based development center from Geely Holdings is how Volvo spent their money.
By consolidating its Chinese operations through control over what happens in the Asian country, Volvo Cars expects to "capture the growth and sourcing potential in China,” according to Håkan Samuelsson, Volvo President and CEO. Additionally, Volvo's interim financial results announced today incorporate the China joint ventures, which is a first for the Volvo Car Group.
The Volvo Interim Report First Half Year 2015 announces that the company sold 232,284 cars in the first six months, up from 229,013 in the same period last year. Though sales in China were virtually flat and the US stabilized during this period, European demand for Volvo cars surged. As expected, revenue went up too.
Other than the all-new 2016 Volvo XC90, which we reviewed in D5 and T6 formats, Volvo will build a new manufacturing facility in South Carolina near Charleston, with production to start in 2018. Over 57,000 orders for the second-gen XC90 have been received to date, which is a testament to how desirable Volvo has become with the all-new generation of the family-oriented 7-seater SUV from Torslanda, Sweden.
The recently spied 2016 Volvo S90 sedan is confirmed to be built in China at the Daqing manufacturing facility, with production to start in the second quarter of 2016. The high-tech SPA platform, 2-liter gasoline and diesel engines, automatic transmission, as well as the hybrid T8 Twin Engine powertrain, will be shared between the successor of the gray-haired S80 sedan and the 2016 Volvo XC90.
By consolidating its Chinese operations through control over what happens in the Asian country, Volvo Cars expects to "capture the growth and sourcing potential in China,” according to Håkan Samuelsson, Volvo President and CEO. Additionally, Volvo's interim financial results announced today incorporate the China joint ventures, which is a first for the Volvo Car Group.
The Volvo Interim Report First Half Year 2015 announces that the company sold 232,284 cars in the first six months, up from 229,013 in the same period last year. Though sales in China were virtually flat and the US stabilized during this period, European demand for Volvo cars surged. As expected, revenue went up too.
Other than the all-new 2016 Volvo XC90, which we reviewed in D5 and T6 formats, Volvo will build a new manufacturing facility in South Carolina near Charleston, with production to start in 2018. Over 57,000 orders for the second-gen XC90 have been received to date, which is a testament to how desirable Volvo has become with the all-new generation of the family-oriented 7-seater SUV from Torslanda, Sweden.
The recently spied 2016 Volvo S90 sedan is confirmed to be built in China at the Daqing manufacturing facility, with production to start in the second quarter of 2016. The high-tech SPA platform, 2-liter gasoline and diesel engines, automatic transmission, as well as the hybrid T8 Twin Engine powertrain, will be shared between the successor of the gray-haired S80 sedan and the 2016 Volvo XC90.
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