The Quotes are Powered By Forexpros, the Forex, Futures, and Stock Markets Portal.

Volvo, Looser in its Geerly ownership but the Chinese gain access to key technology

Wednesday, 05 December 2012
Just over two years after the Chinese company, Geely bought Volvo Cars, an expert believe that Volvo has been the been the biggest looser.

It was thought that it would be a good strategy to get access to the supposedly vast Chinese market if Volvo went over to the Chinese. But it has turns out that the Chinese benefit as Volvo car looses.

According to an expert of the Chinese auto industry, Michael Dunne, based in Hong Kong, in a report by the Swedish business daily, Dagens Industri, Volvo is the big loser in the deal with the Chinese.
"They have not caught the customers across the world as expected and now sit with huge costs and a diluted brand, "he says in an interview with Reuters, according to the Swedish business paper.

Geely has however benefited from the deal because Geely cars having improved design and reliability with the knowledge from Volvo.

Volvo's development in China is going the wrong way. This year, sales have fallen by more than 7 per cent against last year while competitors increased substantially.

In an analysis in the Wall Street Journal highlights, Michael Dunne revealed that Volvo has failed to attract luxury car buyers in China because some see Volvo as a Chinese brand.
by Scancomar.com Team

We welcome your contribution. Did you find anything wrong with this article? Do you want to contribute to our news network? Do have a news tip or assist us with a correction