Russian sales of Volvo this year, like that of other auto brands, still leave much to be desired: following the collapse of the market, buyers in car dealerships have decreased significantly. Sales of the new flagship model XC90, which were supposed to start back in March, were eventually postponed and only start now (exact dates are still unknown). Together with a noticeable decline in prices for the lineup announced at the end of April, this should improve the company's affairs in Russia. At the same time, despite local problems Volvo, having passed into Chinese hands, has been demonstrating more than decent results in recent years, having managed to retain old customers and attract new ones.
In 2010, the Chinese did not just acquire the first European brand that came to hand. They bought a company known primarily for security technology. It is with this that the Chinese auto companies from the very beginning existed (and still remain) serious problems: many cars were absolutely uncompetitive in terms of European or American standards.
Five years ago, the global economic crisis forced the American concern to get rid of surplus assets, one of which was the passenger division of Volvo.
The Swedish manufacturer was making losses, and Ford did not want to invest in the company during the crisis. As a result, the Americans sold Volvo to the Chinese auto giant Geely for $ 1.8 billion. At the same time, in 1999, Volvo cost the Americans 3.5 times more - $ 6.5 billion.
When Volvo passed into the hands of the Chinese, many auto experts and brand fans seriously expressed fears that Volvo would lose its image and that the Chinese, using Swedish technology, would not invest heavily in it.
But new owner Volvo was quick to assure that the brand will be given strategic independence and the ability to operate according to its own business plan.
“Cooperation with the Swedish brand is, first of all, security technologies. Volvo has a very strong position in this aspect of the automotive industry, - said the head of Geely Li Shufu at the end of April. “In addition, we are now focused on research and development work to create a new modular CMA platform (for the production of C-class cars). The C-class sedan will go into production in 2017 and will be the first car on new platform for small CMA models, common to Geely and Volvo. The same platform will be received by the successor to the Volvo V40 ”.
“Based on this modular architecture, Volvo develops some products and Geely develops others of its own,
- specifies Shufu. - They have different directions and completely different characteristics corresponding to positioning in their segments ”.
However, here it should be admitted that Volvo did not initially count on such a format of cooperation. Soon after the deal, the then CEO of Volvo made it clear that no technical collaboration with Geely was out of the question.
“We understand ourselves as a part of a financial, not an industrial holding, so we keep our independence, which is very important for us. Geely and I work in completely different areas of the automotive industry, which makes cooperation on a wide range of issues almost meaningless, ”he said.
Well, after a few years the situation has changed, and it is easy to guess that the Chinese still managed to impose their vision of mutual cooperation on the Swedes.
For Geely, who lacked stars from the sky, the purchase of Volvo opened up access to unique safety technologies and other developments. But at the same time, the deal made it possible for Geely to become the first Chinese car company to expand not only in the European and US markets, but also in developing countries, becoming a global brand.
At least such plans are declared by Li Shufu, who is called the "Chinese Henry Ford". Geely plans to start exporting Swedish brand cars from factories in China to other countries in the near future. Among the export destinations, besides the United States, experts also mention Russia. Shipments will be made from the Chengdu plant in southwest China.
The Swedish company also does not hide that it is quite pleased with the cooperation. The main criterion is the growing volume of global sales.
Lars Danielson, head of Volvo China, admits that 2014 was one of the best years for Volvo Cars. “More than 466 thousand cars have been sold, of all models,” Larson said. -
Business was also successful in Western Europe, which is also an important market for us. 56 thousand cars were sold in the USA. Overall sales were good, with our profits up 17% to $ 2.2 million.
However, the margin is still low.
The context must be borne in mind here. We invest a lot, invest in new products. Doing the same thing that the entire industry is doing would be much easier, and the profits would be different. But the plan is what it is. "
The Chinese market for Volvo is the largest today, with a share of 17% of global sales last year. Sweden is on the second place, the USA is on the third with 12%. Next come the UK (about 9%) and the rest of the European countries - 7%.
“I don’t think that the Volvo company, having become the property of Geele, could have lost anything,” says the general director of radio “Strana”, a well-known auto expert. - Quite the opposite: the brand has retained all its positions.
Yes, they had big plans for the development of the brand in the Chinese market, but so far they have not been able to achieve noticeable results.
Nevertheless, the fact that the Swedish brand is present in China, Europe and the United States is already good. Here we can cite as an example the fate of another Swedish manufacturer - Saab, which simply went bankrupt and ceased to exist. "
According to the expert, when both companies declare joint technical developments, they are very specific.
“For Geely, the purchase of Volvo was the shortest route to modern automotive technology. They, in fact, did not have their own developments. Therefore, speaking about the joint development of two brands, one must understand that all technical base only Europeans provide, and the Chinese side provides funding. Therefore, it is quite logical that the joint technical center of the two companies is located in Sweden, ”he said.
According to Denis Eremenko, general director of PodborAvto, the perception of the brand by Russian consumers has not changed since the moment it came under the wing of a Chinese company. “If the quality of car assembly, the design and positioning of the brand as a whole does not change, then the consumer does not even think about who owns the brand,” Eremenko shared his opinion with Gazeta.Ru. “The purchase of Volvo by the Chinese is just such a case, so this circumstance did not affect the demand from Russian buyers”.
Volvo is not the only example. On the account of the Chinese - the purchase by Dongfeng Motor Group of 14% of the shares of the French concern PSA, which is going through difficult times, the acquisition of BAIC from Saab technologies. One cannot but recall the failed deal to sell the Hummer brand to the Chinese. In addition, it recently became known that the Chinese state-owned chemical corporation ChemChina plans to acquire the Pirelli tire brand for 7.1 billion euros.
But the same tactic is used not only by the Chinese. Indian has owned a British Jaguar for years Land rover and does everything not to be associated with the legendary premium brand among ordinary buyers.
Volvo was founded in 1915 in the Swiss city of Gothenburg as a subsidiary of SKF, a bearing manufacturer. It was founded by former college classmates Assar Gabrielson, an employee of SKF and Gustav Larson. The idea to go into the car business came to young engineers in a restaurant, for beer and crayfish. After some time, SKF management approved their idea and allocated funds for the development and production of the first cars.
The name Volvo is derived from the Latin verb volvete, which means "I roll." The Volvo emblem is a symbol of iron and the god of war, Mars, who fought exclusively with iron weapons. The associations that this emblem should give birth to are reliability and durability.
In 1927, the first Volvo car appeared - a phaeton with an open top and a four-cylinder engine. It was called OV4, and also had an unofficial name - Jacob. It was not just the first Volvo car - it was the first car made in Sweden. The Volvo Jacob had a powerful beech and ash chassis and suspension seats, which were rare in cars from the 1930s. Engine power 28 HP could accelerate the car to 90 km / h.
In 1928, Volvo released its first sedan, the PV4, and two years later, its modification PV651, with a six-cylinder 55 hp engine. with. This model was used as a taxi in Sweden. In the same year, the first Volvo Type 1 truck rolled off the assembly line.
At the Stockholm Motor Show in 1944, Volvo unveiled the PV444. This passenger car became the “people's car” in Sweden due to its high quality and low cost. It was originally planned to assemble 8000 cars, however, due to the high demand, Volvo produced 200,000 cars. At the same exhibition, the company's first bus, the PV60, with a diesel engine was presented.
In 1951 Volvo switches to conveyor production... In the same year, the first Volvo Duete family car was released.
In the 1980s, the company began producing a new generation of cars. They featured a modern design and more powerful engines, which were refined to reduce fuel consumption. The main model of the 80s was the 760 in the sedan body, on which six-cylinder gasoline and diesel engines... It accelerated to 100 km / h in 13 seconds.
Today Volvo is owned by the Chinese concern Geely, which bought it from Ford in 2010 for $ 1.8 billion. However, Volvo's headquarters remained in Gothenburg.
TechnologiesVolvo
Throughout its history, Volvo has focused on advancing safety technology.
The Swedish manufacturer was the first to equip its cars with three-point seat belts, laminated triplex windshields and lambda probes - sensors that help reduce emissions.
In the 1970s, Volvo developed the world's first child restraint system - a booster cushion and a special rear-facing child seat.
Much earlier than other companies, Volvo began to use its own innovative safety solutions on its cars - for example, the City Safety system, which prevents collisions at low speeds.
Volvoin motorsport
Since 2007, the team has been taking part in the world championship in road - circuit racing among body cars... Best achievement - 11th place overall in 2011.
Periodically, Volvo exhibits its cars at the famous rally - the Dakar Marathon. In 1983, the team won the compact truck class.
In addition, the Volvo concern participates in the European Truck Racing Championship. Cars under the Renault brand, which are produced at Volvo factories, won in 2010 and 2011.
Interesting Facts
Volvo is the first company in the world to set up its own dedicated crash investigation team. Based on the data from this unit, new safety systems for Swedish cars are being developed.
Volvo P1800, assembled in 1966, entered the Guinness Book of Records as the car with the most high mileage... It amounted to 4,200,000 km.
King Carl Gustav of Sweden drives a small hatchback on the roads.
Volvoin Russia
Volvo's history in Russia began in 1973, when the state-owned company Sovtransavto purchased Swedish trucks for international transport. The brand's representative office was opened in Russia in 1994. The V40 KOMBI models were especially popular in the 90s. In the 2000s, S-series sedans were the running models in Russia. Swedish cars have become popular among Russian car enthusiasts due to their classic design, high quality and reliability. These factors even influenced the formation of such a concept among motorists as Volvo as a driver. That was the name of the slow-moving, following the rules road traffic motorist who values comfort and safety.
The machines were well suited for operation in the difficult weather conditions of the country. In addition, their success was ensured by their low cost in comparison with cars of competing brands.
Today on Russian market presented big choice Volvo cars: C70 coupe with a hardtop, sedans and, station wagons V60 and V80, as well as all-wheel drive crossovers XC60, XC70, etc. Over the past six years, Russians have been buying about 20,000 Swedish cars a year. The most popular model is the XC90. Sales of this crossover account for about 30% of all models presented today.
The company has a small truck assembly plant in Zelenograd. In addition, in 2009, a Volvo Trucks plant was opened in the Kaluga Region, which produces up to fifteen thousand trucks a year. Volvo does not plan to open factories for the production of passenger cars in Russia yet.
A Swedish concern that produces quality and majestic Volvo cars, has become one of the most influential premium cars in the European market. This happened in the last seven years, but after all, from 2000 to 2007, the concern did not develop, offering customers the same models with old engines. The secret of the Swedish car company's success lies in its alliance with the Chinese. The formal Geely corporation simply bought out the Swedish company, but the deal looks more like a merger.
The Chinese pledged not to rename the brand, to keep the European brand Volvo, the country of origin must remain Sweden, and Geely has no right to use the technical developments of the concern in its cars. I wonder if the Chinese are honoring the signed treaty?
Are there other countries in the world where Volvo is assembled?
Many car enthusiasts confuse Sweden with other Scandinavian and European countries, believing that Volvo is assembled in Norway, Switzerland or even Germany. In fact, Volvo's only plant is located in Gothenburg, Sweden. This enterprise, even after the purchase by the Chinese of the concern, remains in this city and does not reduce its activities.
On the contrary, the Chinese investment gave the Swedish company a huge boost. There are several important aspects that changed in 2007:
- money and technical capabilities appeared for the development of a completely new model range;
- the efforts of the designers of the already powerful company Geely and the Swedes joined together;
- the Volvo brand has received a huge Chinese market, where its cars are sold without unnecessary duties;
- new technologies began to be introduced into machines, thanks to a generous investment;
- the plant expanded its staff, improved production lines and received many other benefits.
If today we consider the manufacturability of car manufacturers, we can safely say that Volvo is one of the best factories in Europe. It stands here the latest equipment, all assembly processes are completely automated. The cars are not just of high quality, they finally meet their price tag. Until 2007, Volvo cars were bought only in Scandinavian countries. They were too expensive and outdated.
Chinese cars Geely after cooperation with the Swedes
Immediately after the unification of the European and Chinese manufacturers under the roof of one concern, Geely had new models that were three heads taller than their predecessors. In fact, the entire model range has changed, new engines began to produce more horses, requiring less fuel. Yes and appearance the Emgrand series has gone ahead a lot.
We offer you to enjoy a video test drive of the new Emgrand EC7
Video:
In the model line of Geely, a crossover even appeared, which had not been announced before. Such changes are associated with the following options for the development of the company:
- despite the ban on the use of Volvo technologies, the Chinese drew certain achievements of the Swedes over to their side;
- as a result of bilateral cooperation with European engineers, new developments were obtained;
- the company was replenished with a good profitable asset and was able to invest in its own production;
- engineers from Sweden were invited to China.
The latter assumption is a verified and proven fact. But Geely deny that this is due to the development of the successful Engrand series. However, there is no difference for the consumer. If a company issues nice cars, let her take technology where it is more convenient for her. What is more important for the consumer is how high-quality a car he can buy in the showroom. That is why the Swedes today are quite satisfied with the seven-year cooperation with the Chinese.
The plant in Gothenburg grows and develops, the brand acquires new models, and the Geely corporation fulfills all its main promises.
Summing up
Over the past few years, Volvo has updated almost the entire model range. Not so long ago, it was announced that the last old XC90 SUV was discontinued, and a few weeks after this news, the first spy photos of the new development appeared.
The company was able not only to update the model offer and make an amazing success in the global automotive market, but also surprised all potential buyers and experts with excellent technologies, the development of which costs a lot of money.
It is not so important in which countries the Volvo is assembled, because the perception of the car, its reliability and comfort are much more important. If you have experience operating a Volvo for the last seven years of production, describe your emotions from this car in the comments.
Apparently, it was so prepared by fate, so that the alliance of a brilliant financier, a talented businessman with a genius of mechanical engineering was doomed to success. The decisiveness and discipline at the heart of Volvo's production resulted in the perfect quality for the Swedish car.
Today, the lineup of this brand includes a huge number of passenger cars and trucks and all of Volvo Cars' main production units are still located in Europe (Ghent, Torsland, Uddevalle).
Volvo in Sweden
In 1964, Volvo Cars in Torslanda opened a completely new car plant, the largest investment in Sweden's industrial history. For fifty years, thousands of people have been busy implementing the daring projects of the best designers. Starting with the very first Volvo Amazon, management has taken the brand in the right direction. Half a century later, the Torslanda plant underwent cardinal change and modernization and its opening in a new form is scheduled for April 24, 2014. The first model released after the reconstruction will be the XC90.
Volvo in Belgium
The largest-scale production of the concern is located today in Belgium. The largest Volvo plant in Europe is located here in the north-east of the country in the city of Ghent. Since its opening in 1965, more than five million passenger cars have rolled off the assembly line, and about 5 thousand people are employed in the production. After the production of small cars Volvo from the Dutch Ned Car plant was transferred to Ghent, the volume of car production here increased to 270 thousand units. in year.
Volvo in China
Now the headquarters of the concern is still located in the Swedish city of Gothenburg. But in 2010, 100% of the shares were sold to the Chinese company Zhejiang Geely Holding Group.
With the aim of expanding production in this region, Volvo Cars opened its first plant in China at the end of 2013, near the city of Chengdu. Manufacturing facilities are located in the Chengdu Technological and Economic Development Zone, covering an area of over 500 thousand square meters. The Swedes are categorically aimed at conquering the lion's share of the local automotive market, and call China "second home". In the near future, the number of cars assembled at this plant should reach 125 thousand units. in year.
Volvo Personvagnar AB is a Swedish car manufacturer specializing in the production of passenger cars and crossovers. Since 2010, it has been a subsidiary of the Chinese company Geely Automobile (holding Zhejiang Geely). The headquarters is located in Gothenburg (Sweden). Interestingly, the very word Volvo in Latin means "I roll."
Assar Gabrielson and Gustav Larson were at the origin of the founding of the Swedish car manufacturer. A chance meeting of college classmates in 1924 led to the formation of an automobile company under the wing of bearing manufacturer SKF.
The first Volvo ÖV4 (Jacob) drove out of the factory gates on the island of Hisingen in Gothenburg in April 1927. The car had an open top of the phaeton type, was equipped with a gasoline four-cylinder engine (28 hp) and could accelerate to 90 km / h. This was followed by the new Volvo PV4 sedan, and a year later the Volvo Special - an extended version of the sedan. In the first year, only 297 cars were sold, but in 1929, 1383 Volvo cars already found their buyers.
Even the first cars of the Swedish company were distinguished by progressive technical stuffing and rich interior equipment. Suspended leather seats, wooden front panel, ashtray, curtains on the windows, and all this at the end of the 20s of the last century.
The company develops and produces reliable cars, and its main strong point is safe cars. Let's note the brightest and most significant models for the Swedish manufacturer:
The PV650 was assembled in the years 1929-1937.
Volvo TR670 from 1930 to 1937.
PV 36 Carioca - 1935-1938.
The Volvo PV800 series received the nickname "pig" and was very popular with Swedish taxi drivers, produced from 1938 to 1958.
PV60 - 1946-1950.
The Volvo PV444 / 544, Sweden's first monocoque car, rolled off the assembly line between 1943 and 1966.
The Duett station wagon was produced from 1953 to 1969.
A unique and rare roadster P1900, only 58 cars were produced in 1956-1957 (according to some sources, 68).
The Volvo Amazon was produced in three body styles: coupe, sedan and station wagon from 1956 to 1970. The car was the first in the world to be equipped with front three-point seat belts.
The P1800 is one of the most beautiful sports coupes from Volvo, produced from 1961 to 1973.
Volvo 66 - compact hatchback, produced in 1975-1980.
Open modern history Swedish company Volvo cars 140 Series, produced from 1966 to 1974.
Four door Volvo sedan 164 represented Sweden in the luxury executive car segment from 1968 to 1975.
The next new Volvo cars in the form of 200 series cars won the love of motorists on both sides of the Atlantic Ocean due to their reliability and safety, cars were produced from 1974 to 1993 and were sold in more than 2.8 million copies. In Europe and North America, you can still find these models in fairly good condition.
300 Series - compact sedans and hatchbacks, produced from 1976 to 1991. They were replaced in 1987 by the Volvo 440 (hatchback) and 460 (sedan) models, production ceased in 1997.
One of the most striking and memorable cars in the history of the Volvo company was the three-door hatchback Volvo 480, produced from 1986 to 1995. The car was the first Volvo with front-wheel drive and the only one in the production line with retractable headlights.
The 700 series midsize sedans and station wagons were produced from 1982 to 1992. The cars sold around the world with a circulation of 1430 thousand units.
The 700 series was replaced in 1990 by the 900 series sedans. The cars were produced until 1998 and were able to repeat the result of the previous series of 1,430,000 cars sold.
The Volvo 850 sedans and station wagons appeared in the company's lineup in 1992. More than 1,360,000 vehicles were sold in over five years, production of the model was discontinued in 1997.
In the 21st century, the Scandinavian company offers a wide range of models. For each type body Volvo its own letter designation is proposed: S - sedan, V - station wagon, C - coupe or convertible, XC - crossover.
The Swedish company Volvo is a leader in the global automotive industry in terms of the implementation of security systems used in passenger cars... Cars originally from Sweden are rightfully considered one of the safest in the global automotive market.
Volvo's auto assembly plants are scattered around the world, ranging from the main factories at Torslanda and Uddevalla (Sweden) to ancillary plants in Ghent (Belgium), Kuala Lumpur (Malaysia) and Chongqing (China).
The lineup in Russia is represented by Volvo С70, Volvo XC70, Volvo S80, Volvo XC90.
