Geely will make their first foray into the notoriously tough British market in 2012, hoping to emulate the success of Korean brands like Hyundai.

While Geely already helps produce the iconic London taxis, the company will face an uphill battle regarding the vehicle’s perceived quality.  Their first UK offering, the EC7 compact car, will cost 10,000 GBP (roughly $15,581 USD) and feature a five-year, 100,000 mile warranty.

Geely is looking to recruit 30 to 40 dealers and sell about 1,000 cars in 2013, with a new model added for the next 4 to 5 years. Geely will be based out of Coventry, where the office of Manganese Bronze Holdings’ London Taxi Company (its partner in London Taxi production) resides, but Geely will remain separate from its subsidiary Volvo Cars.

[Source: Automotive News]

A few years ago, a Chinese car company by the name Geely bought the Swedish luxury car brand Volvo.

As part of Geely’s plan to move the Volvo brand forward, they hired famed car designer Peter Horbury to look after the design direction of this luxury car brand.

Horbury, who hails from Britain, was no stranger at Volvo, having first worked with the brand from 1991 to 2002. So hiring him to look after Volvo’s future was an easy decision for Geely.

But as of today, Horbury has been appointed the role of ‘design chief’ for Geely automobiles.

On this occasion, the Chairman of Geely Group, Said Li Shufu said; “I am delighted that Peter Horbury has accepted the offer to lead the design development of the Geely Group brands into the future. His vast experience in the industry will be key for the future success of Geely Group’s products.”

Hopefully Geely will finally have some…ahem, “original” designs for a change.

[Source: Autocar]

There’s something really Chinese about the Volvo Concept You but I just can’t quite put my finger on it. And I’m actually Chinese.

That there is an oriental feel shouldn’t be a surprise. The Concept You is an evolution of the Concept Universe revealed earlier this year at Auto Shanghai earlier this year. Volvo sought the input of a number of potential Chinese customers at the Shanghai show, and a lot of those ideas were carried over into the You.

Volvo is, of course, now part of China’s Zheijiang Geely Motor Holdings, and part of the company’s focus is on capitalizing on the emerging luxury car market in the world’s most populous country.
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Saab‘s days as an automaker might not yet be numbered. According to a recent report a Chinese automaker may be interested in purchasing the bankrupt automaker. “I’ve heard this one before,” you’re probably thinking to yourself. But this time it’s different…. we promise.

According to Sweden’s Dagens Industry, the interested Chinese suitor is none other than Geely, the very company that successfully bid for and took control of Saab’s Swedish big brother, Volvo. With the resources necessary to complete the transaction Geely has already proven it can navigate the tricky regulations process that has prevented several others from successfully backing Saab.

Recently Saab applied for creditor protection in order to reorganize the company. That move was, however, rejected by the Swedish courts, signifying that Saab may be headed for liquidation.

[Source: NU.nl]

Many people have no clue where to place Volvo. Is it a premium brand like Audi or BMW, or is it more closer to VW and Ford!

The truth is, it’s been languishing in the middle for far too long, and the boss of Geely Automobiles, Li Shufu, has been wanting to take the brand upscale ever since his Chinese company acquired this most Swedish of brands.

Now it seems he will finally get his way. While Volvo bosses have resisted to go upmarket in the past, Shufu has influenced them to have a rethink, primarily after showing them sales figures in China. While models like the XC60 and the China-special long-wheelbase S80 are flourishing, sales of its smaller cars like the S40 have been very low.

This indicates that in an emerging and growing market like China, Volvo can do better as a luxury brand rather than a mid-field brand.

Shufu, who described Volvo as “a trapped tiger,” wants to compete with the likes of the A8 and 7-series with a full-size luxury car. What will the new model be called and when will it be out is not yet known, but we look forward to seeing what they will come up with next.

[Source: Automotive News]

Volvo’s corporate overlords Geely will open a second plant in China, citing that Chinese production is a key factor in the Swedish company’s growth.

The current Chinese plant is located in Daqing, an oil-rich region in northeast China that provided Geely with a majority of the $2.7 billion needed to buy Volvo from Ford. Now, Geely is seeking to open a plant in Chengdu, in the center of China—a decision that has been approved by the Chinese government.

Volvo has a research and development center in Shanghai, rounding out its Chinese connections. In addition, Geely chairman Li Shufu suggests a closer connection to Sweden: “Daqing and Gothenburg are located more or less at the same latitude, so they share the same weather and temperatures, and air quality is also very good in Daqing,” he said. “Swedish people would very much like this place.”

[Source: Left Lane News]

Chinese automaker Zhejiang Geely Holding Group spent $1.7 billion last year to acquire Volvo from Ford Motor Co.,and now plans to spend as much as $11 billion on Volvo products and facilities over the next five years.

Doug Speck, CEO of Volvo Cars of North America, says a growth strategy for the United States will be completed by the end of next month. He explains that the plan will call for new vehicles and possibly an American plant.

Speck expects 60,000 to 70,000 cars. He explains there is some uncertainty related to what the effect of the Japanese disaster will be in terms of production. Speck also explained that 2011 sales will be predominantly driven by the S60. Speck said, “We could easily see ourselves selling 15,000 to 20,000 S60s this year — a huge increment year-on-year from that car line”.

[Source: Automotive News]

In his first press conference as the newly appointed CEO of Volvo, Stefan Jacoby gave a vague outline of where he intends to take the company. Top on Jacoby’s list are improving Volvo’s emotional appeal and looking for ways to work with suppliers and other automakers in the industry.

Jacoby joins Volvo after heading-up VW’s North American division, looking to steer the Swedish automaker to profit under the new ownership of China’s Zhejiang Geely Holding Group Co., after several years of consecutive losses under Ford.

“Volvo stands for safety, solidity and reliability but the emotional positioning of the brand is not sharp enough,” said Jacoby in a press conference Wednesday. No details of how Volvo would create more emotion were given, but over the past few years Volvo has made a push to be more innovative in its designs. Rumors point towards a new flagship luxury sedan to compete with the BMW 7 Series. Other possibilities include going the sports car route.

Making partnerships in the industry will also be a part of Volvo’s mandate, as the ability for smaller automakers like Volvo to compete on a larger scale is becoming increasingly difficult. Jacoby highlighted the company’s small size as a benefit, saying that because it’s nimble it can act quickly. He also said Volvo would look to partner with other automakers on projects and find economies of scale in the process.

The larger plan for Volvo, as laid out by Geely, will see the Swedish automaker double production thanks to a plan in China, while its operations in Europe will continue serving the rest of the global marketplace.

Last year Volvo moved 334,808, down from an all-time high of 458,323 units in 2007. Jacoby did say that while Volvo hasn’t turned a profit since 2005, it was profitable in the last two quarters under Ford.

[Source: Automotive News]

With ownership of Volvo now having officially changed hands from Ford to Geely, the Swedish automaker will look to develop a plan for profitability and growth. And while it’s domestic rival Saab is looking down market, Volvo will reportedly head in the opposite direction, instead planning a new flagship model that would compete directly with the likes of the BMW 7 Series and Mercedes S-Class.

At a press conference following Geely’s takeover of Volvo, company boss Li Shufu actually said as much, stating that he wants Volvo to make “high level cars that compete with the Mercedes S-Class and BMW 7-series”. Shufu also said that Volvo has the technology and resources to make this plan a reality.

Not only would a model in this range command higher prices, but it would also create higher profit margins. But without sharing a platform with another model the expensive R&D involved could make seeing a profit with a flagship Volvo difficult. That is, unless Volvo can manage to sell a significant number of the cars. And while high sales volumes have never been part of Volvo in the past, it’s ownership by the Chinese (now the world’s largest auto market) could change that.

[Source: AutoCar]

Geely has officially purchased Volvo, the iconic Swedish automaker, from Ford, in a rumored $1.8 billion transaction. As part of the deal, Ford will continue to supply powertrains and other components for an unspecified amount of time, while both companies have mutually agreed to safeguard each other’s intellectual property.

Stefan Jacoby, formerly head of Volkswagen North America, will take over as CEO,while Volvo will retain their Swedish headquarters. Volvo is set to launch their new S60 sedan later this year, perhaps the last product developed under the auspices of Ford. Geely has confirmed that a new Chinese assembly plant will be constructed for Volvo as well.

[Source: Top Speed]