Now that Volvo is under new management (that would be China's Geely Motors), the Swedish automaker wants to chart a new course... straight into BMW waters. The firm's newly appointed CEO (and former head of Volkswagen AG's U.S. operations), Stefan Jacoby, said he plans to reposition the brand's vehicles more upmarket and make China its biggest market.
"I'm very committed to bring Volvo to where it belongs, in the top league of the premium manufacturers...We cannot say, 'just do what BMW is doing.' We need to find our Swedish-based definition of what Volvo should deliver," Jacoby told reporters at a meeting at Volvo Cars' Gothenburg headquarters on Wednesday.
A Swedish sport-luxury brand with good design would definitely give luxury buyers something to think about; who doesn't want a rolling sculpture in their driveway? Volvo sees potential in the premium market, and its upcoming products will likely be the beginning of its attack.
Regarding sales: China (aka the world's largest car market) now has a stake in (aka reason to buy cars from) Volvo. Another bonus is that it already offers a long-wheelbase car, the S80L.
With premium automaker sales growing in China, and its own sales also on rise, now would be the perfect time for Volvo to make a step up. For the project, it will get loans from the European Investment Bank and KBC Bank.
Jacoby goes on to say that to do be successful, management will work to pinpoint what the Volvo brand represents. With Saab also looking to move up in the world, it doesn't appear that much will be changing in terms of the Swedish upscale-car war.
By Phil Alex
Via: Bloomberg
