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My guess is that they will lower production costs, not Posted by Bill Homer [Email] (#3427) [Profile/Gallery] (more from Bill Homer) on Thu, 29 Oct 2009 07:51:43 In Reply to: My guess is that they will cheapen the car on, Noel, Thu, 29 Oct 2009 07:06:21 Members do not see ads below this line. - Help Keep This Site Online - Signup |
necessarily "cheapen" the car. Volvo has produced cars in China for more than 20 years. The car that we hired in Shanghai when I was there for business in the late 1980s was a locally produced medium blue Volvo 240, which I recall because my mother had the exact same car, same color - I couldn't see any difference besides the E-Code headlights. Evidently, Volvo shipped complete parts/kits for the cars finished to various levels, i.e. complete engines and transmissions, stamped body panels to be assembled locally. This is not an unusual way to kickstart local manufacturing, it was also done by VW, Jeep and Boeing. As local manufacturing capabilites increased, more parts were produced in country, i.e. stamped body panels, upholstered seat assemblies, etc. How do you think that consumer electronics manufacturing in China started?
Foreign ownership of a premier brand is not always a bad thing. A decade ago, you probably couldn't have given me a Jaguar for use as my daily commuter (even if it was my "cup of tea"). Ford has completely turned around their quality, but unfortunately not their lack of profitability.
I think that the big question will be if Volvo will stay on the cutting edge of development, or turn into a cash cow for the new owners.
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