Volvo Plans to Sell Chinese-Built Cars in US
Fluctuations in world currencies influence where automakers build cars, and the latest plan will see a Swedish automaker building cars in China and selling them in the United States.
Volvo is now owned by Chinese company Zhejiang Geely Holding Group, which will help the company export China-built cars to the United States and Russia as early as next year according to a Volvo executive.
It will start with the long-wheel-based version of the S60 called the S60L, which will be coming to the United States, and the the XC90 SUV which will be sent to Russia. Eventually, 10,000 S60Ls and a few thousand XC90s will be shipped out of China each year.
American customers tend to be leery when it comes to the quality of Chinese-built cars, but Volvo says that a Chinese manufacturing base will minimize foreign exchange risks. “The dollar and the yuan have the best relationship, a more stable relationship than the euro and the dollar,” an unnamed Volvo executive told Automotive News.
[Source: Automotive News]
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