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For Volvo, its ambiguity over the years has finally dawned.
At the just-concluded 2013 Frankfurt International Motor Show, Volvo released a new concept car, Thomas Thomas, the senior vice president of design for the Volvo Group. He told reporters: "The world concept car is based on Volvo's newly developed SPA. The platform was built, and in the future, more production models will be derived from this platform."
When Volvo worked hard to plan a new car blueprint, Volvo's factories in Chengdu, Daqing, and Zhangjiakou engine plant in China all passed approval this year. This indicates that Volvo will become the fourth luxury car to be domestically produced in China. Brand. Can the new platform, new models, and new factories make Volvo the "speed and passion" in recent years?
New car plot
"Many design elements of the new concept car 'Heaven and Earth' are likely to be injected into Volvo's future vehicle model development." Lex Cosman, senior vice president of Volvo Car Group, said that Volvo has currently reserved three series of concept cars. The world launched at the Frankfurt International Motor Show is its first product. In the future, these concept models will also derive more production models.
Indeed, Volvo is trying to change its bottleneck in the development of new cars. Some industry experts believe that when Ford took control of Volvo, Volvo’s new car launch was slow and the market gradually lost. After Geely Group Chairman Li Shufu bought Volvo, Volvo began to accelerate at the pace of new product launches. "In the future, while continuing the Nordic design style, we will continue to increase the design elements of China in order to meet the aesthetics of the Chinese market." Thomas Ellas stressed.
In fact, the reason why Volvo has accelerated its investment in the development of new vehicles is due to the severe challenges it faced in the Chinese market in the past two years.
This reporter learned that in 2012, Volvo's China-based Changan Ford foundry's S40 and S80 appeared to be under-selling, and the S40, which had been manufactured in China for many years, even announced a suspension of production. In addition, monthly sales of Volvo’s main force in China, the S80L, have also dropped from more than a thousand vehicles in 2012 to a few hundred vehicles in 2013, which has directly led to Volvo’s development in China “seriously woundedâ€. In 2012, Volvo’s sales decline rate in the Chinese market was as high as 11%. In the same year, the Chinese luxury car market maintained rapid growth with a growth rate of more than 30%.
The loss of domestic models and the failure to make new products in time made Volvo's development in China awkward. As a result, Volvo made adjustments to its senior executives in China's sales companies.
In September 2012, Fu Qiang, a former vice president of Beijing Benz, took over as Chief Executive Officer of Volvo China Sales, taking over Volvo China's sales. After Fu Qiang took over, he re-discussed the Volvo brand consumer groups, repositioned the brand, improved the channel's operational efficiency, and focused on how to communicate with consumers. At the same time, Volvo China intends to slow down the pace of expansion of the channels and set the network scale objectively. The purpose is to reduce the burden on dealers, reduce the break-even point, and optimize dealer investment.
According to official data, in August 2013, Volvo’s car sales in the Chinese market reached 4,319 units, a year-on-year increase of 65.7%. From January to August, Volvo's total sales in China totaled 37,661 units, an increase of 40.2% year-on-year, once again setting a new sales record for the same period.
Domestic help
Apart from making breakthroughs in the new model planning, Volvo has finally waited for three years for its domestic projects in China.
On August 26th, Volvo Cars had obtained government approval for its localization in China. In accordance with this arrangement, Volvo established vehicle manufacturing bases in Chengdu and Daqing respectively, established an engine manufacturing base in Zhangjiakou, and established a Chinese R&D base in Shanghai. On August 28, the Volvo Chengdu base also eagerly held an opening ceremony to enter the trial operation stage. On September 13th, the Geely Volvo R&D center in Gothenburg, Sweden, entered the operating state. The research and development center will help Gili Volvo build a new generation of mid-tier car platforms.
According to an insider from Volvo, the Volvo Daqing Plant will also hold related ceremonies at the end of September. It is expected that with the completion of production of the Volvo Chengdu Plant and the Volvo Daqing Plant, Volvo will form 200,000 production capacity in China. Bin Wen, general manager of Volvo Chengdu Plant stated: “The Chengdu plant is in trial operation. The first domestic model is the long wheelbase version of the Volvo S60L. It is expected to start production in volume at the end of 2013. The Chengdu plant currently has a capacity of 50,000 units per shift, and the Volvo S60L will It is the first mass production car. In the future, the Chengdu plant will be put into production of two series of products. The annual production capacity of double shifts will reach 100,000.†At the Daqing Plant of Volvo, according to the announcement of the former Ministry of Environmental Protection, it is indicated that the XC60 will be put into production. .
The reporter also learned that the Volvo World Concept Car, the XC60, and the XC90 will all be put into production in China in the future. It seems that Volvo has a bright future in China. However, under the increasingly fierce competition in the luxury car market in China, Volvo’s challenges are also daunting.
Sales data for the first half of 2013 showed that the Audi, BMW and Mercedes-Benz were respectively 281,100, 170,000 and 98,900. Although the first camp had signs of loosening, there was still a gap with the second camp. The second-tier luxury car corps made up of Jaguar Land Rover, Lexus, Volvo, Cadillac, Porsche, etc., have a melee situation. The data shows that in the first half of the year, Jaguar Land Rover sold 42,100 vehicles, Lexus 32,000, Volvo 28,700, Cadillac 19,600 and Porsche 18,300.
In addition, Jaguar Land Rover, Infiniti, Lincoln and Other luxury cars have drawn up plans for domestic production in China. In the future, the battle for the second-line legions in the luxury car market will be staged with more drama. It is foreseeable that Volvo will be even more bloody on the road to fourth in the luxury car.