Volvo to Export Chinese Produced Sedan to U.S. Market
Volvo is planning to export a Chinese made midsized sedan this year to the U.S. and has started to weigh in the possibility of building a factory in the U.S. as well. these moves is said to be significant for the auto industry and Volvo’s parent Zhejiang Geely Holdings Group so far has chosen not to ship vehicles made in China to the U.S. market in any significant numbers and the efforts made by Chinese automakers to export vehicles have foundered.
Volvo is also behind its rivals BMW and Mercedes in creating production in the U.S. which insulates the German brands from currency fluctuations. Volvo is also expected to export a large strategic flagship sedan based in the newly developed and underpinned technology. The car will be shipped out of China together with the Volvo S60L a long wheelbase sedan that Volvo started production in the southwestern China city of Chengdu.
This move is aim to revive Volvo’s momentum in the US market where the volume fell 8 percent last year. The US market which is ling been Volvo’s largest market is replaced by China last year as China bought 81,221 units in 2014 up by 33 percent. The moves are also part of Geely’s turnaround strategy for Volvo which has struggled to go beyond being a brand with an annual volume that is less than half a million.
Volvo is planning to launch seven new products by 2018 and to increase its US sales to 100,000 a year. And by exporting Chinese produced passenger cars to the US and other advanced auto markets is a long standing goal of China automakers. This will be a breakthrough not only for Geely but for the China’s industry as well.