The Volvo concern, which has proven itself as a manufacturer of high-quality and reliable equipment, is one of the most influential representatives in Europe, in particular in the premium segment. It has several factories specializing in the production of different vehicles. The XC90 model for Russia is assembled in Sweden and Belgium. Chinese-assembled cars are sold in the Asian market.
Between 2000 and 2007, the Swedish brand did not develop much, offering customers older models with a limited range of engines. The next year was decisive for the company and served as a starting point for its further successful development. This is due to the conclusion of an alliance with the Chinese Geely. In fact, the Chinese bought the Swedish company, but the agreement still looks like a merger.
The Chinese manufacturer committed itself not to change the name of the Volvo brand, to leave Sweden as the country of the manufacturer, and also not to use the Swedes' developments for the Gelly models.
In which countries are Volvo cars assembled?
There is a misconception that Volvo cars are assembled in Norway, Switzerland and even Germany. In fact, the brand's main European manufacturing facilities are located in the Swedish city of Torslanda as well as Belgian Ghent.
Until 2013, an enterprise in Uddevalla operated in Sweden, where the C70 model was produced. There are no other Volvo car assembly plants in Europe. In China, the assembly of Swedish cars is organized at a plant in Chengdu.
After the merger with the Chinese Geely, production volumes in Gothenburg did not decrease, but even increased. This was facilitated by significant Chinese investment.
Pros of merging:
- Serious investments made it possible to develop new cars, technologies and expand the brand's model range.
- Allowed to exchange experience with designers from Geely.
- For Volvo, the Chinese market opened up, where its products were exempted from duties.
- The staff of the enterprise has expanded, production lines have been updated and automated.
Second generation Volvo XC90
The company originally planned to release the new XC90 in 2009-2010, but due to the merger with Geely, the timing was postponed.
The world debut of the model took place in 2014, and the serial one at the plant in Gothenburg. The first cars were delivered to their customers in the spring of 2015. On the occasion of the brand's birthday, the Swedes have released a special version called First Edition with a circulation of 1927 units.
The cars were sold out in 47 hours.
In 2016, the model was awarded the North American SUV Award. The winner is determined by a commission of independent journalists. A similar success was experienced by the previous version of the car in 2003. In addition, the crossover performed best in its class according to Euro Ncap.
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 price cut 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 primarily known for its 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 Volvo's new owner was quick to assure that the brand would be given strategic independence and the ability to operate on 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 vehicle on a new platform for the small-sized CMA models shared by 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, 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 part of a financial, not an industrial holding, so we maintain 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 not hard 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 something,” 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 the entire technical base is provided only by Europeans, 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, 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. The Indian has owned the British Jaguar Land Rover for several years now and is doing everything so as 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 engine with a capacity of 55 liters. from. 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 assembly line 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 1980s was the 760 sedan, which was powered by six-cylinder petrol 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 Touring Car Championship 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 highest mileage. It amounted to 4,200,000 km.
King Carl Gustav of Sweden drives a small hatchback on the roads.
Volvoin Russia
The history of Volvo 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 motorists 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. This was the name of a leisurely motorist who observes the rules of the road, 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, a large selection of Volvo cars is presented on the Russian market: the C70 coupe with a hard folding roof, 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.
Today, such a brand as Volvo (Volvo) is world famous. But how did it all begin?
Vovlo: the history of the brand
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. They were helped in this by SKF, a bearing manufacturer.
Their first brainchild, the Volvo OV4 / Jacob, was created in 1927. 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 comes to the position of the president of the concern, the dawn of its activity dawns for the company. Things were going uphill. The export of Swedish cars to the United States of America was established.
Production also increased. Innovative technologies were introduced, such as the three-point seat belts designed by Niels Ivar Bohlin. The braking system and crumple zones have also been improved.
Volvo: country of origin
The history of the Volvo brand began in Sweden. When interviewing bystanders to the question: “Volvo - whose car? Country of origin of this brand? " the results were as follows:
70% - Germany;
20% - Sweden;
15% - USA;
5% - do not know the answer to this question.
The Volvo concern today
In 1999, the concern sells passenger car factories to Ford. And even later, in 2010, Ford Motor sells the brand to the Chinese company Geely. Volvo's history has gone through more than one crisis. But, having survived them, the brand expanded production. In the automotive industry, it redesigned 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:
cars (trucks, buses, etc.);
engines;
automotive equipment;
construction equipment;
space components.
Many people associate the Volvo car brand with good safety and build quality. Combines great style, power and reliability. "I'm rolling!" - the name of the brand is translated in such a way that it fully justifies it. Anyone who is or was the owner of a car of this brand recommends it to others.
Volvo cars have always been associated with superior quality and unconditional reliability. But this was considered before, until the history of the company began to change dramatically.
At some point, everyone thought that the brand might disappear altogether. After returning to the market, it seemed that Volvo would never be the same again. There will not be the same quality, the same reliability indicators.
As it turned out, the worries and doubts were in vain. Currently, Volvo still continues to produce new cars that are distinguished by excellent assembly, rich equipment, fairly high prices and the most careful approach to.
At the same time, for many, the question remains about where exactly these cars are produced. This is explained by the sale and resale of the company's shares, the transfer of the brand from one hand to another. This, as expected, confused consumers. And when the concept of China sounds next to Volvo, it scares you away from buying the once-best Swedish cars.
An excursion into history
When it comes to the country of manufacture of Volvo, the first thing to remember is the homeland of the brand. Namely Sweden. Yes, the company originated in this country, and now there are several factories operating here. But Volvo's influence has expanded since its inception, allowing the assembly to branch out into production lines in several countries.
The company currently has several main lines of business:
- production of passenger cars;
- manufacturing of freight vehicles;
- supply of parts and spare parts;
- assembly and supply of engines;
- manufacturing of units for trucks, etc.
If we talk about trucks, then we are talking about an offshoot of the company, which is called Volvo Track Center and is based in Kaluga. In fact, this subsidiary has no direct relation to production.
But it all started with a relatively small Swedish factory in the city of Gothenburg. It was here in 1927 that the first car under the Volvo brand rolled off the assembly line.
For over 70 years Volvo has been an integral part of the Volvo Group. But in 1999 the brand was sold. At that time, he became the property of the American auto giant in the person. Although the Americans have not been able to retain the Swedish brand for a long time. This was due to the unprofitability and unprofitability of the further maintenance of the company. As a result, Ford management decided to get rid of Volvo by putting it up for sale.
After 11 years of ownership, Volvo was taken over by the Chinese carmaker Geely from Ford. It was a difficult period for the company, as low profitability, weak sales figures were replaced by a transition to the beginning of a Chinese automaker, which at that time was not yet sufficiently recognizable. Everyone was afraid that this would lead to a drop in quality, a significant decrease in positions and a drop in Volvo's rating.
But in practice, everything turned out differently. Since 2010, when the Chinese bought out Volvo from the Americans, a period of formation and revival of the brand began. Geely managed to correctly build a development strategy, invested money in Volvo, which fully paid off with the start of production of new and updated cars.
The new owners set a goal to radically change the model range, significantly increase production capacity, and globally strengthen Volvo's position in the world market. And they have been doing it successfully so far.
Now more than 2.3 thousand dealers, which are concentrated in 100 countries, are engaged in the sale of cars under the Volvo brand. By the end of last year, the total staff of the auto company around the world totaled over 38 thousand people.
During the same 2017, the company managed to sell almost 600 thousand of its cars of different classes and segments. Moreover, it turned out to be 4 years in a row, when Volvo shows sales records. The results of 2018 promise to be no less successful, but the results of the annual report have not yet been summed up.
As for the financial component, the operating profit for the last year amounted to 14 million kroons against 11 million in 2016. Annual revenues reached 210 million kroons, although a year earlier this figure was at that time a record 180 million.
The main headquarters is located in the homeland of the brand, that is, in Sweden, in the city of Gothenburg. Here the company develops its products, carries out marketing operations and planning, and also deals with administrative processes. And in 2011 we opened 2 offices in China. They are more focused on working in the domestic market. The Chinese headquarters took over the functions of sales, marketing, purchasing and development, as well as some other support functions.
Car manufacturing
Since buyers are interested in where the Volvo CX90, CX60 and a number of other cars are assembled, a more detailed understanding of the brand's production geography is required.
Initially, all Volvo cars were produced in Sweden. But then the production was taken up in other countries. At the same time, the plant in Gothenburg, originally producing Swedish cars, is still the main enterprise, where models such as XC90, V60, S80, etc. are now successfully assembled.
To understand where Volvo is produced and assembled for Russia and other countries, you should study the geography of the automaker.
I would like to immediately notice that in Europe, cars are sold that are focused specifically on the European market. Asian and American assembly lines are concentrated in the USA and Asian countries, respectively. The exception is the plant in Chengdu, which is located in China. The enterprise was opened here in 2013. It assembles cars that are later sold directly at home, that is, in China, and are also sent for sale in the United States.
Another Chinese plant has been operating since 2014. It is located in the city of Daqing. A little later, a plant was opened in Luqiao. The most recent Volvo assembly plant is the Charleston plant located in South Carolina, USA.
Volvo for Russia
It is worthwhile to understand in more detail where cars are assembled under the Volvo brand for Russia. It is a mistake to believe that the process of assembling Volvo cars, which are intended for the Russian market, is established in China. Cars assembled in Sweden or Belgium go to Russia.
To find out exactly where the same Volvo XC90 or another model officially presented in Russia is assembled, you should look at. If the VIN code uses signs 1 or J, then the car was assembled in Sweden. If you see the number 2 on the wine code, then the car is assembled in Belgium, the city of Ghent.
So far, only at the level of rumors is the appearance of a plant in Russia expected. If this happens, then the most likely option is to organize an assembly line. That is, the components will be supplied, and the final assembly will be undertaken by domestic enterprises. This scheme is practiced with many imported cars, so Volvo can become one of them.
In the meantime, you should count on cars supplied from Europe. Objectively, there is nothing wrong with this, since the European assembly is of high quality and accuracy. Whether the domestic specialists will be able to adhere to the same level, if rumors about the appearance of Volvo in Russia become reality, the question is urgent and open.
To summarize and determine where the various Volvo cars such as the XC90, XC60 and other popular models are assembled, it is worth considering the entire current geography of the brand.
- Gothenburg. This city is the main springboard for the Swedish brand, since it is here that the headquarters of the company is located. Plus, one of the most productive factories operates in Gothenburg. Every year, a large number of machines leave the assembly line, distributed around the world for subsequent sale. Among them is Russia;
- Skövde. Currently, this enterprise, located near Gothenburg, is engaged in the production of power plants. Volvo stands out for its reliable and efficient engines, which have won numerous prestigious awards. This is all the merit of the specialists working in the Swedish Skövde;
- Copenhagen. Volvo also has offices in Denmark. There is a research and development center here. That is, they are invented here, introduced into production, tested and modernized;
- Olofström. A Swedish city renowned for its high quality Volvo bodywork components;
- Ghent. One of the main production facilities of the Volvo brand is located in Belgium. The full production cycle is carried out here. In terms of build quality, the specialists from Ghent are considered the best in their field. Indeed, the machines coming off the assembly line in Belgium are distinguished by an excellent fit of all parts. This is not to say that other plants are much worse in this component. But for some reason it is generally accepted that the best Volvo cars are made in Gothenburg and Ghent;
- Silicon Valley. Another research and development center. Located in the American Silicon Valley;
- Charleston. The newest enterprise where a full cycle of production of Volvo cars is carried out. The plant opened in 2018 will help meet American demand for Swedish cars. Volvo has always been popular in the North American market, but previously the cars had to be supplied from other continents. Geely's solution will largely solve the problem of long-term vehicle delivery to end-users;
- Daqing. A relatively new plant operating in the Chinese city of Daqing. It appeared after the acquisition of the Volvo brand by Geely. The cars assembled here are mainly focused on the local market. The enterprise has been operating since 2014;
- Zhangjiakou. Also the Chinese city, where the production of power plants for the entire line of Volvo cars is concentrated;
- Luqiao. A plant in China, which is engaged in a full cycle of production of cars of the Swedish brand;
- Chengdu. At the moment, this is the last among the presented Chinese factories, where the production of cars of several models from Volvo has been established. The enterprise started serial production in 2013;
- Kuala Lumpur. This is Malaysia, where the Chinese from Geely organized an assembly plant that deals with Volvo cars. All the necessary components are supplied here, and the Malaysians only collect everything together;
Bangalore. Another assembly plant in India. Thus, representatives of the Chinese concern Geely are trying to expand their own influence, as well as meet the demand in the emerging market for reliable Volvo cars. As in Malaysian Kuala Lumpur, in Bangalore they are engaged only in assembling from ready-made components.
You can clearly see that the Volvo brand has expanded from several continents and a number of countries at once. The USA, Europe and Asia have their own factories, research centers, assembly lines.
Not everyone expected that after the sale to the Americans and the subsequent sinking of the Volvo brand, the transfer into the hands of Chinese owners would have such a positive effect on the development of the company.
But Volvo has indeed managed to regain its former position. Moreover, many experts are sure that now the brand is only at the initial stages of its formation after its probable disappearance. Everything is going well, sales are growing, new models are emerging and great updates to already proven Volvo car models.
The opening of an enterprise, even in the form of an assembly plant, in Russia will be another big step for Volvo. Among Russians, there is a fairly large demand for cars of this brand.
It is worth remembering that not so long ago there were meetings between representatives of Russia and Volvo. The result of negotiations of the contact group with the plant in Kaliningrad was a trial run of the assembly line for Volvo cars. As a result, 8 station wagons were assembled, which are produced under the name XC70. But after that, it was not possible to agree on cooperation. This is just the first attempt. Negotiations should resume soon. The probability of signing a contract between the parties is quite high.
We must not forget about the impressive achievement in the form of the opening of the Volvo Track Center in Kaluga. Although the assembly of Volvo trucks is not directly related to the production of passenger cars, Russians still have experience of cooperation with representatives of the Swedish brand. In addition, excellent trucks are assembled in Kaluga, the quality of which has no complaints. This fully meets the needs of the domestic market. Also from Kaluga, assembled Volvo trucks are delivered to the neighboring countries of the CIS and the Baltic states.
Despite the relatively high price, advanced technology, excellent build quality, reliable engines and advanced safety systems, in many ways justify the overpriced.
