The Swedish concern, which produces high-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 corporation Geely simply bought out the Swedish company, but the agreement is more like a merger.
The Chinese have given an obligation not to rename the brand, to keep the European Volvo brand, the country of manufacture must remain Sweden, and Geely has no right to use the technical developments of the concern in their cars. I wonder if the Chinese observe 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 Corporation's only factory is located in Gothenburg, Sweden. This enterprise, even after the purchase of the concern by the Chinese, 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 have changed in 2007:
- there was money and technical capabilities to develop a completely new model range;
- the efforts of the designers of Geely, a powerful company at that time, and the Swedes joined;
- the Volvo brand has received a huge Chinese market, where its cars are sold without unnecessary duties;
- new technologies began to be introduced into cars, thanks to generous investments;
- The plant has expanded its staff, improved production lines, and gained 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. Here is the latest equipment, all assembly processes are fully automated. The cars are not just 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 They were too expensive and outdated.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 European and Chinese manufacturers under the roof of one concern, Geely had new models that were three heads taller than their predecessors. Virtually all the lineup changed, new engines began to give more horses, requiring less fuel. Yes and appearance the Emgrand series has gone far ahead.
We invite you to enjoy the video test drive of the new Emgrand EC7
Video:
In the model line Geely even appeared a crossover, which was not 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 pulled over certain developments of the Swedes 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;
- Sweden invited engineers from Sweden to work in China.
The last assumption is a verified and proven fact. But Geely denied the fact that this is due to the development of the successful Engrand series of cars. However, for the consumer, there is no difference. If a company issues good cars, let her take technology where it is more convenient for her. For the consumer, it is more important how high-quality a car he can buy in the salon. That is why the Swedes today are quite satisfied with the seven-year cooperation with the Chinese.
The plant in Gothenburg is growing and developing, the brand is acquiring new models, and 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, the last old XC90 SUV was announced to be 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 Volvo is assembled, because the perception from 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.
Volvo is a Swedish car brand that produces sedans, station wagons, sports cars, coupe, and trucks. Volvo Car Corporation is headquartered in Gothenburg. It is part of the Geely Automobile holding.
When creating cars, brand engineers are especially careful about the issue of safety. They have developed the most innovative technologies in the field of passive and active safety compared to other brands.
At its inception, the company was part of the world's largest manufacturer of bearings, lubrication systems, seals and mechatronics SKF. The word "Volvo" was the company's slogan. Translated from Latin, it means "torsion".
Volvo was founded in 1927 in Gothenburg as a subsidiary of SKF. Assar Gabrielsson became its Managing Director and Gustav Larson became its Chief Engineer. They immediately announced that safety for all road users will be the main principle in the creation of Volvo cars.
The first Volvo car left the assembly line on April 14, 1927. It was a model ÖV 4, nicknamed "Jacob". The main chassis components were developed by Ian G. Smith, who worked for many years in the American automotive industry and borrowed many technical solutions from American cars.
Gustav Larson worked on the creation of a four-cylinder in-line 2-liter engine with side valves. The power unit developed 28 hp. at 2000 rpm Max Speed model was 90 km / h. The open body with five passenger seats was made of sheet steel and placed on a frame of ash and birch. In the harsh climate of Sweden, the open version of the model was not successful. But the PV4 sedan was much more convenient and popular. Its body was a wooden frame, sheathed not with sheet steel, but with artificial leather. By unfolding the seats, it was possible to get two comfortable beds.
Volvo ÖV 4 (1927-1929)
In 1928, an extended version of the PV4, the Special, was introduced, featuring a longer bonnet, flattened dash line, narrower windshield pillars, rectangular rear glass. In the same year, the first Volvo truck, the Type 1, was released.
Since its inception, the company has hatched plans for a six-cylinder engine. In April 1929, the first model with a new engine, the PV651, was introduced. Under its hood was a 3-liter power unit with a capacity of 55 hp. The PV651 and its successor PV652 were wider and longer than the previous cars.
Models with a six-cylinder engine helped the company enter the taxi market, where it aspired to get into. Only in the first year of sales, 1,383 copies were sold, and 27 of them were exported.
Taxi companies really liked reliable and safe cars. Demand spurred Volvo engineers to develop the seven-seat TR671 and TR672 models, which received an extended chassis. In 1935, they were replaced by the TR701-704 with a 3670 cc engine. cm and a power of 80-84 hp.
In 1933, the new PV653 (Standard) and PV654 (De Luxe) entered the market. They received an all-metal body, 17-inch wheels instead of 19-inch, an updated dashboard with glove box. The cars differed from their predecessors in improved sound insulation: the engine was separated from the chassis by rubber cushions, and the wall between the passenger compartment and the engine compartment was covered with noise-absorbing material.
Volvo PV653 (1933-1937)
Then came the 654 De luxe with a plush interior, two spare wheels and a taillight. reversing. In 1935, the PV658 and PV659 models came out, which had a significant impact on the appearance of all cars produced after them. Their radiator had a slightly tilted back position, and the wheel hub caps acquired an unusual shape. All wheels were hydraulically operated brakes.
In 1935 appears new model with a streamlined design similar to American cars. It was a Volvo PV36 Carioca, a comfortable, quiet sedan with independent wishbone front suspension, a strong steel body and a high safety record. Six people could fit in the cabin: three in front and three in the back. The seats were spacious and comfortable. In total, 500 copies of the model were produced, plus one chassis, which Nordbergs Karosseri turned into a luxury convertible.
Volvo PV36 (1935-1938)
In 1936, the first generation of small Volvo models appeared - the PV51 car. It was equipped with the same 86 hp 3.6-liter engine as the PV36 Carioca, but was simpler, more affordable and more popular. The model was distinguished by a narrow body with an undivided windshield, the presence of only one wiper and a modest interior trim.
In the spring of 1939, the company began developing mechanisms to switch to gas produced from coal. These developments were more than ever useful, since there was a shortage of gasoline in Europe. After the outbreak of hostilities, the production of civilian vehicles froze. The company switched to the manufacture of special military vehicles and gas-powered devices.
The first post-war car was the PV60. She was remembered by fans of the brand also as last car from a generation of huge passenger Volvos with a six-cylinder engine. Her appearance was already old-fashioned, but the PV60 still sold well. Say what you like, but it was the last representative of the "old school", very reliable and comfortable.
In 1944, the PV444 was introduced - a car that became a milestone for the brand. It was the first Volvo model to feature compact dimensions and a new design that followed the current trends shown by American automakers. The car received a one-piece steel load-bearing body without a frame and a new four-cylinder engine with a short flywheel and an overhead camshaft. He developed a power of 40 hp. First installed on a car windshield from triplex. Another significant advantage of the new model is low price, which amounted to 4,800 SEK. For this amount, the company's first car was sold in 1927.
The PV444 made its debut at the Volvo show in Stockholm, where 2,300 purchase contracts were signed in 10 days. This is despite the fact that the company's plans included the production of only 8,000 copies of the model. In total, during the production of the car, about 200,000 units were sold.
Volvo PV444 (1946-1958)
In 1954, Volvo produced automotive world real sensation. It was the open, sporty two-seater Sport P 1900. Nobody expected this from a conservative and safety-obsessed automaker. The model was developed with an eye on export markets, as the company already had a negative experience selling convertibles to the Swedish public. However, this time the car sold successfully. Still would! In addition to the dashing appearance and thoughtful security system, she boasted a five-year warranty, providing for the obligations of the car company to pay for repairs more than 200 crowns. The insured event included an accident or an accident on the road. Under the hood of the Sport P 1900 was a 1414 cc inline-four engine. cm power 70 hp
In August 1966, Volvo introduced the 144, which until 1974 was the most massive in the history of the company. This car was distinguished by a large glass area and a successful exterior design. In addition, he received a lot of innovation from Volvo in the field of safety. This list included energy-absorbing zones at the front and rear of the body, a unique brake system, disc brakes on all wheels, a smooth interior without protruding parts and seat belts for the driver and front passenger.
In 1974, the manufacturer introduced a new generation of cars - the 240 and 260 series, created on the basis of the 140 series. They were distinguished from their predecessors by a different front end, an upgraded chassis with MacPherson front wheel suspension, larger engines and new four-cylinder engines.
Volvo 240 (1974-1984)
In the mid-70s, Volvo bought the Dutch DAF Car BV, which allowed it to settle into the small car segment. The first novelty of this series was the Volvo 66, which was produced in the back of a two-door sedan or three-door station wagon. It was equipped with stepless automatic transmission gears and rear wheel drive system.
In 1986, the Volvo 480ES rolled off the assembly line, the brand's first serial front-wheel drive model. She received a design with retractable headlights that was not similar to the previous work of the company.
In 1991, the company introduced the SIPS side impact protection system, and in 1994, it created the world's first airbags that protect against side impact.
In 1999, the division responsible for issuing passenger cars mobiles, bought by Ford Motor Company for $6.45 billion. The following year, Volvo Trucks and Renault entered into an agreement to create a single vehicle manufacturing business, becoming Europe's largest truck manufacturer. In 2010, Ford sold Volvo Cars Indian company Geely Automobile.
The acquaintance of Russian buyers with Volvo took place even under the USSR, when, since 1973, for the needs of Sovtransavto, truck tractors stamps. In 1989, official sales of cars and trucks in Soviet Union. The brand is currently featured on Russian market three companies: VFS Vostok LLC, Volvo Vostok CJSC, responsible for the sale of trucks, and Volvo Cars LLC, which promotes passenger cars. Since 2009, assembly has been carried out in Kaluga trucks Volvo FH, FM, FMX. Investments in the construction of a new plant cost 100 million euros. In 2014, the Volvo Group set up full-cycle cab production at the plant, investing another 90 million euros.
Despite divisions and different owners, the Volvo brand continues its glorious development as a manufacturer of quality and safe cars with a balanced character. The companies plan to expand production and further improve cars.
Apparently, it was destined by fate that the union of a brilliant financier, a talented businessman with a mechanical engineering genius was doomed to success. Decisiveness and discipline underpinned manufactured by Volvo allowed to get the perfect quality for a Swedish car.
Today, the model range of this brand includes a huge number of cars and trucks, and all the main production units of Volvo Cars are still located in Europe (Ghent, Thorsland, Uddevalle).
Volvo in Sweden
In 1964, Volvo Cars in Torsland opened a brand new car factory, investing in it the largest investment in the industrial history of Sweden. For fifty years, thousands of people have been busy bringing to life the bold projects of the best designers. From the very first Volvo Amazon model, management has taken the right direction for the brand. Half a century later, the Torslanda plant has undergone a major overhaul and modernization and is scheduled to open in a new form on April 24, 2014. The first model released after the facelift will be the XC90.
Volvo in Belgium
The largest production of the concern is today in Belgium. Here in the north-east of the country in the city of Ghent is the largest Volvo plant in Europe. Since its opening in 1965, more than five million cars have rolled off its assembly line, and about 5 thousand people are employed in production. After the production of compact Volvo models from the Dutch plant Ned Car 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.
In order to expand production in this region, Volvo Cars opened its first plant in the Middle Kingdom, near the city of Chengdu, at the end of 2013. The production facilities are located in the Chengdu Technological and Economic Development Zone, covering an area of more than 500,000 square meters. The Swedes are categorically determined to win the lion's share of the local automotive market and call China "the second home". In the near future, the number of cars assembled at this plant should reach 125 thousand units. in year.
Today, a brand such as Volvo (Volvo) is world famous. But how did it all start?
Vovlo: brand history
The history of Volvo (Volvo) began in 1924 with a meeting of college classmates Assar Gabrielson and Gustav Larson. Together they founded a car company. In this they were helped by the company SKF, which specialized in the production of bearings.
In 1927 their first offspring Volvo OV4/Jacob was created. It was a convertible equipped with a 4-cylinder petrol engine. A little later, they released a sedan and its extended version. As a result, about one and a half thousand cars were sold in two years.
When Gunnar Ingelau takes over as president of the group, the dawn of the company's operations begins. Things were going uphill. Swedish cars were exported to the United States of America.
The production also increased. Innovative technologies were introduced, such as the three-point seat belts by Niels Ivar Bolin. The braking system and crumple zones have also been improved.
Volvo: country of origin
The history of the Volvo brand began in Sweden. When polling passers-by to the question: “Volvo - whose car? Country of manufacture of this brand? the results were as follows:
70% - Germany;
20% - Sweden;
15% - USA;
5% do not know the answer to this question.
Volvo concern today
In 1999, the concern sells car factories to Ford. And even later, in 2010, Ford Motor sells the brand to the Chinese company Geely. The history of Volvo has gone through more than one crisis. But, having survived them, the brand expanded production. In the automotive industry, it was re-profiled and left the production of passenger cars. Today on the market you can see a wide range of products and services under the Volvo brand:
vehicles (trucks, buses, etc.);
engines;
automotive equipment;
construction equipment;
space components.
The Volvo car brand is now associated by many with good safety and build quality. Combines excellent style, power and reliability. "I'm rolling!" - this is how the brand name is translated, which fully justifies it. Anyone who already is or was the owner of a car of this brand recommends it to others.
Russian sales of Volvo this year, like those of other auto brands, leave much to be desired: after the collapse of the market, buyers in car dealerships have become much smaller. Sales of the new flagship model XC90, which were supposed to start in March, were eventually postponed and will start only now (the exact dates are still unknown). Together with a noticeable reduction in prices for the model range, announced at the end of April, this should improve the company's business in Russia. At the same time, despite the local problems of Volvo, having moved to Chinese hands, has shown 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 best known for security technology. It was with this that Chinese auto companies existed from the very beginning (and still remain today) 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 unnecessary 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 was taken over by the Chinese, many auto experts and fans of the brand seriously expressed fear that Volvo would lose its image and that the Chinese, taking advantage of Swedish technology, would not invest heavily in it.
But new Volvo owner was quick to assure that the brand would be granted independence in a strategic perspective and the opportunity to work according to its own business plan.
“Cooperation with the Swedish brand is, first of all, safety technologies. Volvo has a very strong position in this aspect of the automotive industry, said Geely CEO Li Shufu at the end of April. “In addition, we are now focusing on research and development work on the creation of 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 the new CMA small-size platform shared by Geely and Volvo. The successor to the Volvo V40 will get the same platform.”
“Based on this modular architecture, Volvo develops some products, and Geely develops others, its own,
Shufu says. - They have different directions and completely different characteristics corresponding to positioning in their segments.
However, here it is worth recognizing that Volvo did not initially count on such a format of cooperation. Shortly after the deal, Volvo's then CEO made it clear that no technical collaboration with Geely was out of the question.
“We understand ourselves as part of a financial, not an industrial holding, so we maintain independence, which is very important to us. Geely and I work in completely different areas automotive industry which makes cooperation on a wide range of issues practically meaningless,” he said.
Well, a few years later the situation has changed, and it is not difficult to guess that the Chinese still managed to impose their vision of mutual cooperation on the Swedes.
For the star-struck Geely, Volvo's purchase opened up access to unique technologies security and other developments. But at the same time, the deal allowed Geely to become the first Chinese automobile company, deployed not only in the market of Europe and the USA, 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." In the near future, Geely plans to start exporting Swedish brand cars from factories in China to other countries. Among the export destinations, in addition to the United States, experts also name Russia. Shipments will be made from a factory in Chengdu in southwest China.
The Swedish company also does not hide the fact that it is quite satisfied with the cooperation. The main criterion is the growing volume of world sales.
According to Lars Danielson, head of Volvo China, 2014 was one of the best years for Volvo Cars. “More than 466,000 vehicles have been sold, all models,” Larson said. —
Business was also going well 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.
Here you need to keep in mind the context. We invest a lot, invest in new products. It would be much easier to do what the whole industry does, and the profits would be different. But the plan is what it is."
The Chinese market for Volvo today is the largest - its share reached 17% of global sales last year. Sweden is in second place, the United States is third with 12%. Next come the UK (about 9%) and other European countries - 7%.
“I don’t think that Volvo, having become the property of Geele, could lose something,” says the general director of Strana radio, a well-known auto expert. — Quite the opposite: the brand has retained all its positions.
Yes, they had big plans to develop the brand in the Chinese market, but so far they have not actually achieved any noticeable results.
However, the fact that the Swedish brand is present in China, Europe and the US is already a good thing. 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 announce joint technical developments, they are of a very specific nature.
“For Geely, buying Volvo was the fastest way to get modern automotive technology. They didn't really have any work of their own. Therefore, speaking about the joint development of the two brands, one must understand that only the Europeans provide the entire technical base, 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.
As Denis Eremenko, CEO of PodborAvto, notes, the perception of the brand Russian consumers has not changed since the moment it came under the wing of a Chinese company. “If the build quality of cars, the design and positioning of the brand as a whole do not change, then the consumer does not think at all about who owns the brand,” Yeremenko shared his opinion with Gazeta.Ru. - Purchase Volvo Chinese- just such a case, so this circumstance did not affect the demand from Russian buyers in any way.
The example of Volvo is not the only one. On account of the Chinese - the purchase by Dongfeng Motor Group of a 14% stake in the French concern PSA, which is experiencing difficult times, the acquisition of BAIC from Saab technologies. It is impossible not to 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 tactics are used not only by the Chinese. Indian has been owning a British Jaguar for several years Land Rover and does everything not to be associated with the legendary premium brand among ordinary buyers.