2005 Volvo V70 2.4 Wagon 4-door 2.4l on 2040-cars

Auto blog

Trade war tactics: How Volvo will land a cheap Chinese EV on U.S. shores

A made-in-China electric vehicle will hit U.S. dealers this summer offering power and efficiency similar to the Tesla Model Y, the world's best-selling EV, but for about $8,000 less. The EX30 from Volvo Cars, the Swedish luxury brand owned by China's Geely, foreshadows the fierce competitive threat U.S. automakers could face from Chinese EV manufacturers that have surged far ahead of global rivals, especially on affordability. The $35,000 window sticker of Volvo's compact SUV hits a sweet spot in the U.S. market, where most buyers cannot afford most EVs. The competitive price reflects an unusual combination of Geely's China-specific cost advantages and Volvo's ability to skirt U.S. tariffs on Chinese cars because it also has U.S. manufacturing operations, according to interviews with four sources familiar with Volvo and Geely strategy and several U.S. trade policy experts. Chinese EV makers can undercut global competitors largely because of the nation's domination of battery minerals mining and refining, as well as its long-standing commitment to EV development, including heavy government subsidies. In addition, Geely has slashed manufacturing costs by merging supply chains and sharing platforms and parts with Volvo and other Geely brands, according to two senior Geely managers, who spoke on condition of anonymity because they are not authorized to speak publicly. Despite its aggressive price, Volvo is targeting hefty profit margins on the EX30 of between 15% and 20% globally, said a third Geely source. China's EV dominance will be on display this week at the nation's premier auto show in Beijing. In the China market, the world's largest, dozens of domestic EV brands are fighting it out in a price war while foreign automakers have steadily lost market share. The intense competition has driven China's biggest EV makers, led by BYD, to accelerate exporting of EVs that can capture higher prices and profits in less competitive overseas markets. The EX30 will be among only a handful of China-made cars sold in the United States, none of them from Chinese brands. Vehicles from China currently face a 27.5% tariff and increasingly strident calls for higher trade barriers from U.S. automakers and their political allies. But Volvo is eligible for tariff refunds under a law that awards them to firms with U.S. manufacturing operations — such as VolvoÂ’s South Carolina plant — that also export similar products, according to U.S.

Volvo debuts new Drive-E four-cylinder engines

Volvo is introducing a new engine family based on its new Drive-E philosophy, which encompasses "all innovations made to reduce the impact on the environment," the automaker says. Less cylinders allows for less environmental impact, so the new engines are all four-pots. They also were designed to pair easily with Volvo's upcoming hybrid drive system, which "will reach power figures in the V8 territory" and play a "dominant part of the top end of [Volvo's] range," says Derek Crabb, Vice President Powertrain Engineering. Volvo also says we can expect "power curves that give exciting drivability compared with engines with more cylinders."
Volvo says some versions of the engine were designed targeting best-in-class fuel economy. There are both gasoline and diesel options, but the latter of which isn't scheduled for US consumption. Instead, the US will be offered two states of tune of the gasoline Drive-E engine for front-wheel-drive vehicles. Some of Volvo's current all-wheel-drive powertrains will remain available in the US until the company has transitioned solely to the new, fuel-efficient inline-fours.

Volvo to complete concept car trilogy in Geneva

Volvo went through some doldrums around the same time it was bought by Geely, but it proved that it was back when it unveiled the P1800-inpsired Concept Coupe last August at the Frankfurt Motor Show. It followed up with the sleek Concept XC Coupe crossover (pictured above) in Detroit that echoed the next-generation XC90. Now, the Swede is readying one more concept to bring the trilogy to an end, and act as the centerpiece of its display at the Geneva Motor Show in March.
There are no images of the new concept yet, not even a teaser, but Volvo says that like the other two, it's designed by Thomas Ingenlath and shares common design elements. Since it has already imagined a future coupe and crossover, maybe the concept is a sedan. Volvo has confirmed that it rides on the modular Scalable Product Architecture platform that is being used on multiple future production models and uses its new Drive-E four-cylinder engine family.
The Concept Coupe and Concept XC Coupe will be on display with the new concept in Geneva so that visitors can get a complete idea of Volvo's future. Hopefully, the company has finally righted the course and is ready to compete on the world stage again. Scroll down to read Volvo's few details about the new concept.