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Exclusive: Volvo to sell Chinese-made cars in U.S. this year - execs
By Norihiko Shirouzu
November 11, 2014
Reuters


BEIJING (Reuters) - Volvo Car Group plans to export a Chinese-made midsize sedan this year to the United States, and is starting to weigh the possibility of building a vehicle factory in the United States, people familiar with the Chinese-owned automaker’s plans said.

Both moves would be significant for the auto industry and Volvo’s parent, Zhejiang Geely Holding Group Co [GEELY.UL]. So far, global automakers have chosen not to ship vehicles made in China to the U.S. market in any significant numbers, and efforts by Chinese automakers to export vehicles to the United States have foundered.

Volvo is also behind rivals BMW (BMWG.DE) and Mercedes (DAIGn.DE) in establishing production in the United States, which insulates the German brands from currency fluctuations.

Volvo might also export a large "strategic, flagship" sedan based on a newly developed underpinning technology, said the executives, who work for Zhejiang Geely. That car would be shipped out of China in addition to the Volvo S60L, a long wheelbase version of the S60 sedan Volvo began producing in the southwestern China city of Chengdu more than a year ago.

The moves are aimed at reviving Volvo’s momentum in the U.S. market where volume last year fell 8 percent from 2013 to 56,371 vehicles. The U.S. market, which has long been Volvo’s largest market, was replaced by China last year. China bought 81,221 Volvos in 2014, up 33 percent.

More at link: https://finance.yahoo.com/news/exclusive-volvo-sell-chinese-made-054458289.html
 

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looks like their plans are very modest, but if successful they could really shake up the auto industry. Though I wonder cost-wise if there would be any material savings over producing in Mexico, especially once shipping across the Pacific is factored in. I'd prefer to see the manufacturing stay in the USA, and if the choice is Mexico vs. China I'd much rather see it in Mexico to help build up Mexico's economy.

The real question is how will the press play it? I'm sure Volvo doesn't want "Chinese made Volvo" to be headline news. If it does make the headlines it could do Volvo damage. My bet is the press won't make a big deal of it. But if GM tries to make a car in China there will be headlines galore.
 

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If it is made in China, Germany, Sweden, or Japan it is an import from a country that does not import our autos competitively; where at least Mexico does. To me it doesn't matter on location if it is an import. From a business perspective, any new global expansion for products mostly bound for the U.S. should be made in Mexico. In Volvo's case, an SUV that is assembled in Mexico can be shipped to Europe with no tariffs; they could not do that if assembled in the U.S.
 

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This MAY be a tipping point which Volvo and their Chinese masters don't anticipate. Go look at the dog treat section in your supermarket; after the China pet food scare, dog treat producers in the US specifically marked their packaging to show it was made in the US.

Are their Chinese parts on US-built cars? Do you have an LNJ Equinox? That 3.4L V-6 was made in China and the auto glass market is seemingingly being taken over by Fuyao, to include US plants (The Moraine assembly plant featured in the documentary The Last Truck is becoming a Fuyao plant). Of course, consumers expect the automakers (product integrators in this case) to demand the parts going into the cars they assemble to meet stringent standards. They also expect the federal government to have the ability to punish companies who have defective cars or hide the defects (see Toyota, GM, and now Honda).

People don't ride in a spatula set, their armoir or a gas grille. They put their kid's clothes in a Haier washer, but not their kids. Will people trust their lives in a "Made in China" vehicle? Sure, but how many? Undoubtedly there are people who are completely ignorant as to the way China is run, but thankfully enough people remember things like the EP-3 Shootdown and Tiananmen Square:

http://time.com/2822290/tiananmen-square-massacre-anniversary/

Do you really think a whistleblower similar to the engineers in the GM Ignition switch cover-up will come forward concerning defects in Geely-built Volvos? Do you think Geely execs will show up to American congressional hearings?

I may have considered a Volvo as my next car in the near future...Nah, someone else can take the crash diving submarine depreciation:

 

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Just one more brick in Volvo's road to irrelevance.
 

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for everybody "knocking" made in China I will say one of the "most valuable brands" is and always WAS made in China and China has done NO harm to the iPhone/iPad ETC and APPLE computers has had a VERY strong growth even after Jobs stated publicly it would NOT be possible to build iPhones in the USA
from NY times 2012
http://www.nytimes.com/2012/01/22/b...queezed-middle-class.html?pagewanted=all&_r=0
But as Steven P. Jobs of Apple spoke, President Obama interrupted with an inquiry of his own: what would it take to make iPhones in the United States?

Not long ago, Apple boasted that its products were made in America. Today, few are. Almost all of the 70 million iPhones, 30 million iPads and 59 million other products Apple sold last year were manufactured overseas.

Why can’t that work come home? Mr. Obama asked.

Mr. Jobs’s reply was unambiguous. “Those jobs aren’t coming back,” he said, according to another dinner guest.

The president’s question touched upon a central conviction at Apple. It isn’t just that workers are cheaper abroad. Rather, Apple’s executives believe the vast scale of overseas factories as well as the flexibility, diligence and industrial skills of foreign workers have so outpaced their American counterparts that “Made in the U.S.A.” is no longer a viable option for most Apple products.

Apple has become one of the best-known, most admired and most imitated companies on earth, in part through an unrelenting mastery of global operations. Last year, it earned over $400,000 in profit per employee, more than Goldman Sachs, Exxon Mobil or Google.
 

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for everybody "knocking" made in China I will say one of the "most valuable brands" is and always WAS made in China and China has done NO harm to the iPhone/iPad ETC and APPLE computers has had a VERY strong growth even after Jobs stated publicly it would NOT be possible to build iPhones in the USA
He was full of crap.
Of course it is possible to make iPhones in the U.S. Just not as profitably, which is all that matters.

Anyway, if you will not suffer bodily harm if you smash your iPhone.
Chinese car = Safe car... not so much.
 

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One band I play with uses Mackie SR-series powered speakers made in China about 2003-2004. They have US-made Eminence drivers, but the 13-ply enclosures and power amps are all Chinese made. They have been soldiering on and apart from one arced transformer after seven years still function. Our Japanese-made Yamaha 24 channel mixer which travels in a roadcase has had faults three times in the same period and needed repair, even though it kept working. Last gig we lost the right stereo channel. The speakers have been abused, lugged, thrown about in vans and pulling them down off poles and handled roughly - one has lost a stopper from the bottom, otherwise, they're pretty much cherry with just slip cordura covers. So Chinese does not automatically= poor quality. They've chugged away for hours at a time in 100+ degree heat on New Years Eve, sometimes clipping frantically due to stupid bandmates.

I have newish s/h Peavey PR15 powered speakers for the other band and they are Chinese, too - they are the best-sounding plastic box speakers I've heard with neodymium magnet 15" woofers that weigh nothing and they have startling clarity with no resonance, even with a kickdrum through them. Best speakers I've used live, with no eq'ing. For the bucks, they are certainly great value for money and have way better sound and a lot more of it than you need for a bar-band. I'd actually rate them as good as the JBL Eon 510 I have @ 60% of the price.
 

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Well yeah, Polish-made products are excellent :)
No experience with Polish-made products, so I would have no issue with giving 'em a chance.
Plenty of experience with Chinese goods. I'm not buying anything from them that costs much.
I would definitely not buy anything they made that's as expensive as a car.
 

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