Anybody complaining about all the iPhones made in China? But then how could man complain a Volvo made in China? Makes no sense right?

Volvo Considers Exporting China-Made Cars to US

Jacoby said Volvo is likely to build new manufacturing plants in multiple locations, including the United States, but increasing assembly plants in China would be the priority policy for now. He said that the decision as to whether Volvo will export China-made vehicles to the United States or other countries is still under discussion, as any production plan for China must be approved by the Chinese government in advance.

Geely chairman Li Shufu said that up to 300,000 Volvo vehicles are assembled in three assembly plants in China every year. They are also planning to build a new assembly plant, possibly to be located in the southwestern city of Chengdu, next to a nearly completed Geely factory. Shanghai or the northeastern city of Daqing are two other locations being considered.

Meanwhile, Ford Motor Co, which sold Volvo to Geely, has been manufacturing Volvo vehicles in China for several years and will continue to do so for Geely and Volvo. None of these vehicles will be exported to the United States however.

Jacoby said that Volvo is trying to reduce currency exchange risk around the world, especially the euro-US dollar exchange that has eroded the profitability of shipping Volvos produced in Sweden and Belgium to the US.

“The major challenge in the United States is that we are too dependent on euro-US dollar exchange rates,” Jacoby said. “China offers an opportunity in that respect. It does not get rid of them but at least allows us to reduce currency risk exposure.”

By EVS

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