Geely Wants Volvo To Challenge BMW And Mercedes
Following the acquisition of approximately $1.5 billion, the Chinese from the Geely wants to create a rival for Mercedes S-Class and BMW 7 Series by Volvo S80 and to sell a total of 380,000 units per year.
The Chinese from Geely wants to make from Volvo a top rival in the premium segment. According to the some rumors, Volvo will fight with BMW and Mercedes-Benz in the premium segment. For Volvo to become profitable, the Chinese expected to sell about 380,000 units per year. During 2009, the automaker from Gothenburg has sold 335,000 units and has lost $653 millions.
“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, the Geely Auto CEO. He hopes to boost Volvo’s global reputation, especially in China, and step up research and development efforts in order to maximize sales bring Volvo back into profitability.
Geely is one of the automakers with the fastest growth, but the Chinese are far from the German conglomerates that own BMW and Mercedes-Benz brands, regardless of the field compared. In addition to the substantial differences in financial capacity, the Chinese from Geely will have to pass over the cultural issues and the Swedish automaker image, subtle hit when it was purchased by a Chinese automaker.