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At a press conference held earlier today in Beijing, Chinese-owned Volvo Cars announced plans to build a new plant in the city of Chengdu and continuing investigations for a second factory in Daqing, in north-eastern China. Volvo said that the deal is still pending approval from the Chinese government.

"We regard the Chinese market as the second home market for Volvo Car Corporation and a very important part of the plan to build a successful future for the company," said Stefan Jacoby, President and CEO of Volvo Car Corporation.

The Chengdu assembly plant will only build Volvo cars and have an initial output of around 100,000 cars annually, with production estimated to start during 2013. Volvo said that the decision to expand in China will not affect operations and employment in Europe.

"We will build an entirely new plant in Chengdu and further investigate the opportunities for establishing an additional factory in Daqing," said Jacoby. "Our production in China will, however, not have any impact on decisions affecting capacity utilization of our plants in Sweden and Belgium" says Stefan Jacoby.

The Swedish automaker, which was acquired from Ford by China's Geely in 2010, also announced that Shanghai will serve as Volvo Car China's headquarters and centre for product development, design and sourcing. "Among other priorities, Volvo Car China will also support Volvo Corporation R&D in Sweden regarding the development of electric vehicles and hybrids," the company said in a statement.

"The Volvo Car China Technology Centre in Shanghai will develop into a complete product development organization on an international level," said Freeman Shen, Volvo Car Corporation SVP & China Operations Chairman. "It will have the competence and capacity to work together with the HQ in Sweden, participating in Volvo Car Corporation's work process for developing entirely new models."

Volvo said that it plans to increase its business presence in the China and aims to reach a sales volume of about 200,000 cars a year in the country by 2015. The company's global retail sales during 2010 reached 373,525 (an increase of 11.2 per cent compared to 2009), with only 30,000 of those sold in China.

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When it comes to making cars, China is king. We’re talking the world’s largest car market, with over a hundred individual marques. So why is it that there are virtually zero Chinese car manufactures selling cars in the U.S. aka the world’s other largest car market?

So far, China’s “Big Four” (well, the four most visible to those outside of China) have made and broken promises of bringing their vehicles to the North American market. Brilliance, Chery, Nanjing and Geely have all backed down from their plans to open dealerships and factories stateside. So far, not a single car from China's major automakers has touched down on U.S. soil outside a motor show.

Senior analyst Bill Visnic of Edmunds.com explains why: “This isn’t computers or cellphones, where you just get into a big-box store. You need some dealerships, and those things are tremendous investments of time and resources. [The Chinese] thought it was going to be a lot easier than it was.”

BYD hopes to change all that. China’s sixth largest automaker provided plug-in hybrid cars to the 2008 Beijing Olympics and now plans on bringing that hybrid, the awkwardly named F3DM, to the U.S.A. for Spring 2012. It still could be an uphill challenge, though.

The fallout from the slump in auto sales after the Global Financial Crisis, the government’s bailouts of two of the Big Three, the liquidation of numerous dealerships and the reduction in hybrid sales that came with the sudden drop in fuel prices is still being felt in much of America’s automotive heartland. Add to that the small market share commanded by hybrid and electric vehicles – just 2.2% worldwide according to JD Power – and BYD may be in over their heads already.

AS Mike Omotoso from JD Power explains:

“Because consumers are wary about electric vehicles and their driving range and batteries, they are even more likely to go with more established companies like G.M. and Nissan. The problem with the Chinese car companies is they are trying to run before they walk.”

Only time will tell if BYD’s U.S. plans end in fruition or failure.

By Tristan Hankins

Source: New York Times

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With its U.S. sales steadily declining for 7 years now, Volvo has no choice but to radically rethink its strategy. The Swedish automaker is currently offering nine models in the States or about as many as Volkswagen does, but it sold almost five times fewer cars than the Germans in 2010.

Consequently, the Swedish brand, which is now owned by China's Geely, has decided to significantly reduce the number of models in its North American lineup and concentrate on best-selling vehicles in an effort to increase sales.

“Five or six is probably a good number”, said Doug Speck, head of Volvo’s operations in the U.S., in a telephone interview for Bloomberg. “We have to focus on the key segments with significant volume potential”.

Mr. Speck confirmed that the V50 estate is sure to go, although didn’t specify exactly when, saying that dealers will be notified first. The manufacturer hasn’t decided yet which other models will be phased out, but it will definitely keep the S60 sedan and the XC60 and XC90 crossovers, he added.

Volvo will also try to boost sales with more advertising and expects “double-digit” percentage growth in the U.S in 2011.

As for the near future, Mr. Speck said that Volvo will introduce hybrids and all-electric cars, but declined to say if it will bring diesels to America.

By Csaba Daradics

Source: Bloomberg

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China carmaker Geely will present the family car or MPV variant in the years ahead. Geely to make sure cars are cheaper than a million people of Toyota Avanza.

Placement of low prices of course taken Geely to its MPV's MPV market is more competitive in the homeland. Geely own new MPV will be releasing it early in 2011.

"The price will be below the price of the Toyota Avanza, in order to be competitive, the early launch in 2011," said President Director of PT Indonesia A. Geely Cars Budi Pramono the sidelines of a media test drive of the Geely MK in the Bandung, Thursday (08/05/2010).

Although the claim is still under development, but Geely Car PT Indonesia (GMI) 515 GV ensure Geely MPV will be launched in the country later this year.

Thus disclosed GMI President Director Budi Pramod while talking with Legal. According to him, currently the GMI is still waiting for the production of the GV 515 that use the right wheel. "Because in China alone is currently still use the steering wheel left," he said.

The process of change from the wheel left to right it said he had spent approximately 6-8 months. "If the process of changing from left to right is not long, but once altered it also needs a process of testing," he said.

The process of testing, he said, among others, the road test phase, the synchronization between the position of pedals, levers transmission with steering wheel that is now changing its position to the right, and also how will motorists will be familiar with a bunch of these positions.

That's why, said Budi, if in the near future in their home countries GV 515 will begin production using the steering wheel right, then no longer Affairs Panda MPV was ready to go in Indonesia. "Probably around the end of this year was," he said.

As a newcomer, Geely did not want to peg the price too expensive. "If we put a high price later on baseball even get anything, let alone the new MPV," said Budi.

MPV variant that will be sold Geely named Englon SV5. This new own car face had displayed beautifully in Beijing Auto Show last April.

Englon SV5 itself is a 7 seater MPV which carry two options ie, 1299 cc engine and 1498 cc. With his performance, look no less Englon SV5 with parbikan Japanese have long dominated this class.

"The door is a sliding passenger door, we ask that it be made so the electric sliding door, and they agreed, so this car will be more modern but with a more affordable price of the bag," said one owner of Geely dealers in Indonesia who were in Beijing Auto Show.

Toyota Avanza variants priced lowest price is Rp 130 million on the road of Jakarta. Can Geely MPV his Price below Rp 100 million? Next year he replied.