Volvo could revive lagging US sales with Chinese-manufactured model image

The first automaker to deliver and sell a Chinese-built vehicle could actually be Swedish. That’s because Volvo, now owned by China’s powerful Geely, has long been rumored to make the move.

The move could actually have a very solid business foundation. German automakers, who currently control the top spots when it comes to sales in the world’s largest luxury market – America – have been very successful in bringing entry-level, more affordable models to the US. And Volvo, expanding naturally its production in the parent’s home country, could hit the jackpot twice.

The Swedish automaker has several models on the local Chinese production roster, while other overseas markets are traditionally served by the expensive European factories. Volvo could make a great move by bringing to the US the so far China-exclusive long-wheelbase version of the S60 sedan. So, they could bring a roomier model than the competition, at the same entry-level price point because of cheaper Chinese production.

And, after a hiatus and slowing sales in the US, following the changeover of the company in 2010 when Ford sold the brand to the Chinese parent Geely, the beloved Swedish automaker could return in force, especially since next spring also harbors the US sales start of the new generation flagship SUV, the XC 90.

Via Automotive News