Volvo wants an automotive partner for small car development

Posted on Tuesday, 24 January 2012 , 21:01:19 byLucia

Filed under volvo-small-car-developmentvolvo-five-door-hatchbackVolvoEuropeanChinaFord

Volvo wants an automotive partner for small car development

Smaller car manufacturers do not take into consideration the idea of developing new models due to the high costs that would be implied. So far, Volvo has built its models based on the platforms and powertrains from its former owner Ford and the company is currently looking for a new partner with the purpose of developing its next generation of compact models. The Chinese carmaker Geely is the present owner of Volvo and an impressive 20 percent sales increase was recorded last year. However, its 450,000 units sold make it a small competitor in the worldwide automotive industry, thus considering the idea of sharing a new model development. Volvo's CEO Stefan Jacoby, stated to the Financial Times that they were open for partners in a win-win situation in order to share platforms, engines, as well as a general higher scale of economics. According to the 2010 agreement between Ford and Geely, the former is supposed to ensure platforms and components to Volvo for an undisclosed time after the sale. The Focus-based three-door C30 represents its current compact car and it is going to be joined by the new V40 five-door compact hatch that is planned for its world debut at the Geneva Motor Show in March. Jacoby also added that although no decisions had been made, there were some partners whom he beared in mind as the Volvo's CEO wants to double Volvo's annual production to 800,000 units by 2020. Two new plants are currently being built in China, as part of the company's strategy to achieve the goals mentioned previously. Costs will be cut down due to the fact that the Swedish car manufacturer will slash its engine line-up from ten units down to only two turbocharged four-cylinders, one diesel and one gasoline, thus obtaining a reduction of the unique engine parts by 60 percent. Its bigger models are planned to be built on the new Scalable Platform Architecture, which appears to be an efficient modular structure that will permit considerable savings as related to development, tooling and assembly costs.


Volvo wants an automotive partner for small car development image Volvo wants an automotive partner for small car development image
Volvo wants an automotive partner for small car development image Volvo wants an automotive partner for small car development image
Volvo wants an automotive partner for small car development image