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Volvo eying return to 100k US sales to ensure dealer profitability

Struggling Volvo may be on a verge of a renaissance thanks to the forthcoming completion of its lauded concept car trilogy, new Drive-E engine family and much-discussed SPA modular platform. Its nascent renewal is mostly being financed by $11-billion in funding from its Chinese parent company, Geely, and if it all goes right, Volvo hopes to sell 100,000 cars a year in the States by 2016. That milestone is vital, because it would ensure Volvo's US dealer network is profitable, according to Volvo CEO Håkan Samuelsson.
In a new Ward's Auto story, Samuelsson notes that his company is launching a slate of fresh products in the coming years, including the new-to-the-US V60 wagon and mid-cycle updates for its S60 sedan and XC60 crossover. But the most important new vehicle will be the recently spied XC90 that is expected to be unveiled just before the end of this year. Samuelsson is also looking at future vehicles for the US, including replacements for the S80 and V70. The V40 is also planned for the US, but not until the next generation, according to the Volvo CEO.
Of course, it's going to take a lot to reach 100,000 US sales in three years. Volvo sold just 61,233 units here in 2013, and according to WardsAuto, Volvo hasn't sold 100,000 cars in the US since 2007. To reach its goal, Volvo's stateside business will need to grow sales by about 40 percent.

Volvo Cars delays EX90 production

Sweden-based Volvo Cars has delayed the start of production of its new Volvo EX90 model for more software development and testing, it said on Thursday, sending its shares down 5%. The company now expects to start production of the fully electric SUV in the first half of 2024, it said in a statement. Volvo Cars, majority owned by China's Geely, unveiled the model late last year, expecting it to hit showrooms in early 2024. Production was previously planned to begin at the end of 2023, a Volvo Cars spokesperson said. He declined to say when the company now expects the model to reach showrooms. Related: How the new Volvo EX90 electric SUV adds revolution to the evolution Volvo EX90 order book closed due to 'tremendous reception' Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Daimler rebuffs Geely offer to buy stake

HONG KONG/BEIJING - Daimler AG has turned down an offer from China's Geely to take a stake of up to 5 percent via a discounted share placement, as the German automaker has long been reluctant to see existing shareholdings diluted, sources with knowledge of the talks said. A stake of that size would be worth $4.5 billion at current market prices. Although Daimler declined the offer, it told Geely it was welcome to buy shares in the open market, the sources added. Carmakers in China have embarked on a flurry of dealmaking, as they scramble to boost production of electric and plug-in hybrid vehicles ahead of tough new quotas to be imposed by Beijing, which wants to reduce urban smog and lower the country's reliance on oil. People with knowledge of Geely's thinking said the company was keen to access Daimler's electric car battery technology and wanted to establish an electric car joint venture in Wuhan, the capital of Hubei province. Geely, which also owns Swedish car maker Volvo, is still hopeful it can secure a deal in some form over the coming weeks, they added. The two automakers met in Beijing in recent weeks at Geely's behest. There, the Chinese firm, formally known as Zhejiang Geely Holding Group, offered to take a stake of between 3 percent and 5 percent if Daimler would issue new shares at a discount, the sources said. It was not immediately clear what kind of discount for the shares Geely had in mind or whether Geely was interested in buying the shares on the open market. A spokesman for Geely declined to comment. A spokesman for Daimler said the company was "very happy with our shareholder structure at present", but added that it would welcome new investors with a long-term interest in the company. Shares in Daimler were up 1 percent in early Wednesday trade, in line with the broader market.DAIMLER ALREADY TIED TO BAIC, BYD Geely, which has a market value of some $32 billion, is the leading domestic brand in China with a 5 percent market share, according to an analysis by Nomura Securities. A stake of 5 percent would establish it as Daimler's third-largest shareholder behind the Kuwait Investment Authority and BlackRock, who hold 6.8 percent and 6 percent respectively, according to Reuters data.