Autoblog Canada

China still 10 years away from globally competitive car company

Zach Bowman — Mon, 25 Feb 2013 16:29:00 EST

Filed under: China, Geely, Plants/Manufacturing

It may be a spell before Chinese automakers are capable of turning out a globally competitive vehicle. That's the findings of a sprawling 200 page report by Bernstein Research. The group went through the trouble of purchasing two Chinese-made cars, importing them to Europe and disassembling them down to every last nut and bolt. The study also included in-depth interviews with CEOs at each of the major manufacturers, including Great Wall, Chery, Brilliance and SAIC among others. Researchers found that by and large, global partners aren't holding up their end of joint venture deals, with the vast majority of foreign automakers seemingly not taking the Chinese market seriously.

The one exception to that rule, according to Bernstein, is General Motors and SAIC. GM has pumped a staggering amount of cash into China, and as a result, SAIC seems leagues ahead of its peers on the design and engineering front. Speaking of engineering, the study found most Chinese cars to simply be reverse-engineered examples of foreign models, with the Toyota Corolla being the most popular. That's due in part to the fact that Chinese automakers spend US$100 million a year on research and development on average.

For comparison's sake, a company like Volkswagen or Toyota spends closer to US$1 billion. The Truth About Cars has a closer look at the report's contents. You can find that writeup here and here.

Gallery: BMW 5 Series Long Wheelbase for China

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China still 10 years away from globally competitive car company originally appeared on Autoblog Canada on Mon, 25 Feb 2013 16:29:00 EST. Please see our terms for use of feeds.

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London Black Taxi manufacturer sold to China's Geely

Jonathon Ramsey — Mon, 04 Feb 2013 08:45:00 EST

Filed under: UK, Geely, Earnings/Financials, Specialty

Geely, the Chinese company that also owns Volvo, now owns Manganese Bronze Holdings (MBH), makers of London's Black Cab. MBH went into administration late last year, and some had looked to Geely to rescue the company in which it had a 19.7-per cent equity stake. Although it's taken three months to strike a deal, and more than half of the workforce was let go, Geely finally agreed to buy MBH for 11.4 million pounds (CAD$17.8M).

The purchase confers to Geely "the business and principal assets" of MBH, including the intellectual property and trademarks, equipment, properties, unsold stock, "goodwill" and complete ownership of the China-based joint venture in which Geely was producing the Englong SC7-RV. Happily for fans of the iconic product, the deal keeps production in Coventry and Geely has stated its desire to reestablish and grow the firm.

Reasserting authority in the UK taxi market and getting back in the good books of owners will take money and commitment. Manufacturers like Nissan and Mercedes-Benz have been poaching former owners of LTI products, and what current owners have seen as a lack of service and support has turned apathy into ire. Geely will need to put the time and money into new, competitive and reliable models to make a success of its latest purchase. If those new models can retain the Black Cab's aesthetic place in the London streetscape, all the better for it.

Continue reading London Black Taxi manufacturer sold to China's Geely

London Black Taxi manufacturer sold to China's Geely originally appeared on Autoblog Canada on Mon, 04 Feb 2013 08:45:00 EST. Please see our terms for use of feeds.

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Volvo agrees to transfer tech to Chinese parent Geely

Jeffrey N. Ross — Tue, 11 Dec 2012 18:31:00 EST

Filed under: China, Volvo, Geely, Technology

Following the acquisition of Volvo by China's Zhejiang Geely Holding Group in 2010, we definitely saw this news coming. The two companies have signed an agreement that will give Chinese automaker Geely access to key technologies developed by Volvo, and in turn, the deal could help the Swedish automaker lower its production costs.

As a part of the "technological cooperation agreements" signed by both companies, Automotive News China reports that Geely will be able to tap Volvo for three much-needed technologies, including the use of a midsize platform, Volvo's proven safety innovations and interior air quality systems. The latter two technologies are important to improve the crashworthiness of Geely's cars, along with helping isolate vehicle occupants from China's often severe air pollution. The report says that Volvo tech will likely be used on a premium car brand that Geely is expected to create.

Volvo, on the other hand, is to benefit from the "local market exploration experience and cost control experience" of Zhejiang Geely Holding Group, which is technical way of saying that Volvo will be able reduce its costs by tapping into Geely's established supply chain.

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Volvo agrees to transfer tech to Chinese parent Geely originally appeared on Autoblog Canada on Tue, 11 Dec 2012 18:31:00 EST. Please see our terms for use of feeds.

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Volvo CEO Jacoby suffers mild stroke, takes leave

Jonathon Ramsey — Mon, 24 Sep 2012 10:00:00 EST

Filed under: Volvo, Geely

Reuters reports that Stefan Jacoby, CEO of Volvo, has suffered a mild stroke. It happened last week, and although Jacoby says he has limited movement in the extremities on his right side, he says he's already begun improving.

Jacoby, 54, is "under medical supervision" and will be on sick leave for a month. It's a busy time for the company captain as a he works out how to convey the full value of Volvo offerings and is apportioning Geely's $11 billion investment, not to mention supervising the launch of the V40 Cross Country and a considering a Mini rival. Company CFO Jan Gurander has taken over in Jacoby's absence. We wish Jacoby a speedy and complete recovery.

News Source: Reuters

Image Credit: ChinaFotoPress / Getty

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Volvo CEO Jacoby suffers mild stroke, takes leave originally appeared on Autoblog Canada on Mon, 24 Sep 2012 10:00:00 EST. Please see our terms for use of feeds.

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Heico Sportiv gears up to mod new Volvo V40

Noah Joseph — Thu, 03 May 2012 09:30:00 EST

Filed under: Hatchback, Aftermarket, Europe, Volvo, Geely, Wagon, Performance

The emergence of the V40 is arguably the biggest news to come out of Volvo since Ford sold it to Geely. Just as with any new car - European hatchbacks especially - the aftermarket will follow shortly with modifications, and in the case of Volvo, that means Heico Sportiv.

The German tuning house specializes in Gothenburg's finest. The firm already has a new ECU module for the T5 engine in the V40 that brings output up from 237 horsepower to 266 and from 236 pound-feet of torque to 269. Heico has released a pair of renderings previewing what it plans to do with the outside of the slick new sport-wagon.

From the teaser renderings, we can see a new set of lightweight seven-spoke alloys, new bumpers front and rear, side skirt extensions, a relatively low-key diffuser and quad ovoid exhaust tips. In other words, the V40, only slightly more so. Unfortunately, since the V40 isn't earmarked for American showrooms, this may be as close as we'll get.

News Source: Heico Sportiv via World Car Fans

Heico Sportiv gears up to mod new Volvo V40 originally appeared on Autoblog Canada on Thu, 03 May 2012 09:30:00 EST. Please see our terms for use of feeds.

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Volvo celebrates 85 years by repeating history

Dan Roth — Mon, 16 Apr 2012 07:59:00 EST

Filed under: China, Europe, Volvo, Geely

The first Volvo, an ÖV4, drove through the factory gates in Göthenburg around 10AM on April 14th, 1927. To celebrate 85 years of building its uniquely Swedish cars, Volvo President and CEO Stefan Jacoby recreated the moment along with Olof Persson, President and CEO of the Volvo Group (the truck-building Volvo).

From a modest start - Volvo only sold 300 cars in its first year - the company built its business by building solid trucks and buses that help earn the profits to support the car business that took off like wildfire with the eventual introduction of the PV444. Volvo Car Corporation and the Volvo Group are separate companies now, with China's Geely owning the automotive side of the business, but they'll be forever joined by that spring day in 1927. The press release can be seen past the jump.

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Volvo celebrates 85 years by repeating history originally appeared on Autoblog Canada on Mon, 16 Apr 2012 07:59:00 EST. Please see our terms for use of feeds.

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Geely announces US$11 billion investment in Volvo

Dan Roth — Mon, 09 Apr 2012 10:00:00 EST

Filed under: China, Volvo, Geely, Plants/Manufacturing, Earnings/Financials

Volvo is poised to rapidly inflate its presence in China, and it believes the way forward is through an US$11 billion spending plan. "We want to revive Volvo and give the brand its strength back," says Li Shufu, Chairman of Geely Automobile Holdings. Speaking with German magazine Wirtschafts Woche, Shufu disclosed that Geely will put up US$11 billion for a new engine factory, increased research and development and technology upgrades. However, Volvo's Per-Ake Froberg tells Reuters that Volvo itself will be providing the funds through borrowing and other means.

No matter where the funding comes from, the investment is meant to aggressively drive the Volvo brand in the Chinese market, where the Swedish brand sold about 50,000 cars last year. Geely wants Volvo to account for 20 per cent of the premium car market in just three years(!) with a target of 200,000 vehicles for 2014. It's all part of an ambitious plan to double Volvo sales over the next ten years, and for its stewardship, Geely will get a new premium brand for China that uses Volvo tech and engineering. In addition, the two brands will be combining their purchasing power to get better deals from suppliers and small engine and electric vehicle development will also be shared between Volvo and Geely.

As the last Swedish brand standing, it's heartening to see that Geely has designs on increasing Volvo's sales. Here's hoping the recently voracious appetite for cars in the Chinese market doesn't shortchange American buyers looking for Nordic iron.

News Source: Reuters

Image Credit: Gou Yige / AFP / Getty

Geely announces US$11 billion investment in Volvo originally appeared on Autoblog Canada on Mon, 09 Apr 2012 10:00:00 EST. Please see our terms for use of feeds.

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Volvo bidding for (parts of) Saab

Chris Shunk — Fri, 24 Feb 2012 11:29:00 EST

Filed under: Saab, Volvo, Geely, Motor sports, Government/Legal

Volvo is reportedly interesting in getting out its checkbook in search of a production parts bargain over at Saab. No, the 9-5 likely won't be wearing a Volvo badge any time soon, but the tooling that helped build parts for the big sedan could one day be in a Volvo factory.

SaabsUnited quotes an unnamed source who states that Volvo is interested in purchasing tooling from the Saab bankruptcy estate. The source reiterated that Volvo isn't interested in any production at the Trollhättan factory, adding that the purchased parts would likely travel to China for use by Volvo owner Geely.

While we're putting this story in the rumormill for now, purchasing expensive tooling at a fire-sale discount sounds like a potentially brilliant idea for Geely and Volvo. Volvo could soon begin building vehicles in China to expand its presence in the emerging market, and it always helps to get such a project off the ground with some high-quality parts that obviously haven't been used much lately.

News Source: SaabsUnited

Image Credit: Joe Raedle / Getty

Volvo bidding for (parts of) Saab originally appeared on Autoblog Canada on Fri, 24 Feb 2012 11:29:00 EST. Please see our terms for use of feeds.

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Volvo designer Horbury headed to China with Geely

Dan Roth — Thu, 03 Nov 2011 10:28:00 EST

Filed under: China, Volvo, Geely, Design/Style

When you think of designer Peter Horbury, Volvo follows logically. Soon, we'll all have to expand our thinking to leap from mention of Mr. Horbury to Chinese automaker (and Volvo owner) Geely. The well-regarded designer has been linked with Volvo for decades, and now he's reportedly adding styling responsibilities for Geely to his to-do list. He'll pack his bags in Gothenburg, Sweden where he's been vice president of Volvo design, and touch down in China to offer his talents to the Geely Group as it works to grow its brand and eventually offer its vehicles worldwide.

Bringing a steady-handed designer to lead its styling efforts will help Geely stand apart from its sometimes weirdly penned compatriots. Looking at what the British designer accomplished during his tenure at Volvo, going from iconoclastic boxes to a decidedly curvy design revival in Gothenburg, he's already masterminded what Geely needs to accomplish. The best part is that it's not a loss of design continuity for Volvo, as he'll stay on there, but it's a whole new playground for Mr. Horbury to devise a new design language.

This should be interesting.

News Source: TheDetroitBureau.com

Volvo designer Horbury headed to China with Geely originally appeared on Autoblog Canada on Thu, 03 Nov 2011 10:28:00 EST. Please see our terms for use of feeds.

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Geely channels London's iconic taxi with Englong SC7-RV for Shanghai

Chris Shunk — Fri, 15 Apr 2011 17:30:00 EST

Filed under: China, Geely, Wagon, Work, Shanghai Motor Show

Geely Englong SC7-RV - Click above to view the image gallery

Chinese automaker Geely is part owner of Manganese Bronze, which makes the famous black taxi cabs for the UK and Chinese markets. But while a pricey cab makes sense for the UK, a high-dollar cab in China isn't always profitable. For that reason, Geely will introduce the Englong SC7-RV next week at the Shanghai Motor Show.

While the instantly recognizable UK taxi does its job well, it utilizes a platform that is totally unique. By contrast, the Englong SC7-RV will reportedly use a platform from Geely's existing fleet. And since the parts are common and the production will likely occur in China, costs are expected to dip considerably. And if you ask us, the SC7-RV actually manages to look kind of cool. Even better for prospective taxi owners in China, this livery special will likely make it to production.

Gallery: Geely Englong SC7-RV

[Source: China Car Times]

Geely channels London's iconic taxi with Englong SC7-RV for Shanghai originally appeared on Autoblog Canada on Fri, 15 Apr 2011 17:30:00 EST. Please see our terms for use of feeds.

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