Photo: Volvo
Volvo Car Corp. still has its own debts to pay, despite having been bought by Chinese automaker Geely, so they have asked for, and received, a loan of €922-million or $1.2-billion, in order to pay off some of it, as well as to make further investments, in their quest to double their sales by the year 2020. They are planning to invest a reported $11-biilion, in order to achieve the set goal - 800,000 vehicles production output.
However, with the scaled back production output, caused by the lack of demand in Europe, will undoubtedly affect their grand plans. Volvo spokesman Per-Ake Forberg, said: "We are developing an entirely new vehicle architecture that will be very important and that will of course need to be financed."
Also, the company’s newly-appointed CEO, Hakan Samuelsson, announced last week that he did not get any positive signals from Europe, yet he saw promise in the North American market, about which he said was ‘coming back’, while China was still exhibiting a growth trend, which may be slower than it was a few years ago, but it is still growth, and more than welcome, in these uncertain times, when other manufacturers are struggling to stay afloat.
Also, the company’s newly-appointed CEO, Hakan Samuelsson, announced last week that he did not get any positive signals from Europe, yet he saw promise in the North American market, about which he said was ‘coming back’, while China was still exhibiting a growth trend, which may be slower than it was a few years ago, but it is still growth, and more than welcome, in these uncertain times, when other manufacturers are struggling to stay afloat.
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