Following a $1.7 billion acquisition of Volvo from Ford Motor Co last year, Chinese automaker Zhejiang Geely Holding Group now plans to spend another $11 billion on Volvo products and facilities over the next 5 years. According to Doug Speck, CEO of Volvo Cars of North America, a growth strategy for the United States will be completed by the end of next month. So far, North American plans call for new vehicles and perhaps even a U.S. plant.
Highlights from Speck’s interview with Automotive News:
- Volvo plans to sell 60,000 to 70,000 cars in the U.S. in 2011 with the new S60 being the leader.
- Volvo Car Corp CEO Stefan Jacoby wants to sell 120,000 in the U.S. by 2020. The cornerstone of the business will be the S60 and the XC60. Over the midterm XC90 will clearly be a product that will be counted on for some volume.
- XC90 huh? That’s right, Speck says the model is coming back: “We are approaching it the same way if we can do a good job with the two 60s and XC90. Both are brand new or fairly new, and we have a plan to refresh and bring an all-new XC90 to the market.”
– By: Omar Rana
Source: Automotive News