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Geely Wants Volvo To Compete With BMW And Mercedes-Benz

News | August 9th, 2010 by 15
volvo-sc90-concept-6-lg

According to a report by Automotive News, Geely, the new Chinese owner of Volvo Cars, wants the Swedish car maker, best known for its safety, …

According to a report by Automotive News, Geely, the new Chinese owner of Volvo Cars, wants the Swedish car maker, best known for its safety, to build cars that will compete head-to-head with premium automakers like BMW  and Mercedes.

Geely purchased the Volvo brand from Ford for $1.5 billion which represents China’s biggest acquisition of a foreign automaker.

Sources close to the Chinese company state that the the research and development department of the Volvo brand will be the main priority, while a modest sale increase would be enough to keep the company on the profitability course.

Geely Wants Volvo To Compete With BMW And Mercedes Benz

“We want to make more high-level cars that compete with the S class of Mercedes Benz and the 7 series of BMW. We need products to compete in that segment,” said Shufu Li, CEO Geely.

“If Volvo can sell 380,000 units every year, the business will be profitable, but in order to get an upper hand in the competition we need a dramatic increase in volume (above that),” he said. Volvo sold nearly 335,000 cars last year, and lost $653 million.

Volvo’s high-end sedan, S80 sells for $39,200, a far lower MSRP than BMW’s entry level 7 Series in the US, 740i, which starts at $70,150. The other German competitor, Mercedes-Benz, has the S400 hybrid starting at $87,950.

Although Geely is one of the fastest growing automotive companies, their revenue and profits are considerably smaller when compared to the German mammoths like BMW, Mercedes and Porsche.

[Source: Automotive News ]

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  • http://www.eclecticelectronics.net blued888

    Wow. That concept looks sleek, although it resembles other cars. Lexus IS headlights, 350Z/370Z shape towards the back, Maserati-like grill, Aston Martin hood.

  • http://www.facebook.com/profile.php?id=100000325894622 Hubert Jadczak

    No, it’s not, it looks more like carillac than any japan craps.

    • Lariv

      Do you mean Cadillac?

      • http://www.facebook.com/profile.php?id=100000325894622 Hubert Jadczak

        Yes, Cadillac :P

  • Gord

    I think the chinese will stick to their beemers and mercs.

  • viper

    volvo is the real deal already.

  • oo

    It’s just a joke

  • FreudeKing

    Another CEO evaluating projects using a completely misguiding indicator: PROFITS. You may be earning profits but decreasing value for the shareholders!

    As for that car, it is really good looking. I wouldn’t be surprised if they bring that out in a year or two, as opposed to BMW’s consistent delays and pocrastination. You snooze, you lose. The best way to draw attention and build up a brand is to make products that look remarkable – especially in the auto industry.

    After constant disappointments from BMW, I look forward to what Volvo can do. My hope for BMW to bring out one remarkable looking production car is gone.

    • kcsnyud

      Whatever….

  • http://www.facebook.com/profile.php?id=1497041056 Daniel Hoang

    Volvo is a Chinese Car now?

    LETS SEE CRASH TEST RATINGS…

  • Giom

    You need a really strong holding company to pull off what Geely wants to do. I’m not sure If Geely is THAT strong, but if they do it cleverly, anything is possible.

    I like the Volvo brand – of recent years, that is. I would hate to see them suffer a defeat, so, here’s to success!

  • aChinese

    Chinese think they can just buy a brand and profit/thrive with it…….oh man, in a dream. Remember Cyrix—>VIA and IBM(ThinkPad)—>Lenovo? Now Volvo—>????

    • FreudeKing

      it’s what you do with it that counts.

    • kcsnyud

      lol lol lol and look at byd. Its a chinese car company and look at wat they did wit it:

      f0- Toyota Aygo.
      f3- Toyota Corolla (previous generation)
      f6- Honda Accord (previous generation)

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