Owned now by China’s Zhejiang Geely Holding Group, Volvo – the Swedish premium manufacturer – is now expecting the country to take first place from the US as its biggest single market.
After Ford, the second largest US automaker sold the premium carmaker to the Chinese company in 2010, Volvo is in the midst of a four-year renaissance plan – worth 11 billion-euro ($15 billion) – that sees the company making its new models.
Now, according to a company statement, even though China’s luxury market is poised to outgrow the general industry sales rise, reaching an increase of 20% over last year’s sales, Volvo is poised to outpace this figure – delivering at least 80,000 cars locally. Among its plans for the country, we note that Volvo intends to make at its Daqing manufacturing facility the XC90 classic – the China version of soon to be retired XC90 SUV – which should cease Swedish production in 2014.
As it moves to increase research and development to reach at least 6% of revenue for the year, the Gothenburg-based carmaker aims to double its car sales by 2020 to reach around 800,000 units.
After Volvo delivered last year 427,840 cars globally, the first quarter tally stands at 108,170 vehicles – an increase of 9.5% year-over-year from 2013. That was aided by a jump of 25% in China, while March was the ninth consecutive month of grow for the company, with a sales increase of 18%.