What is Changan Volvo all about?
2 Answers
Because this vehicle is produced by a joint venture established between Chongqing Changan Automobile Co., Ltd. and Volvo Cars. Reasons for Changan's acquisition of Volvo: 1. Enhance brand recognition: Acquiring a legendary brand brings both fame and fortune. If Volvo is successfully acquired by a state-owned enterprise, its impact will far exceed SAIC's acquisition of the Rover brand and Nanjing Automobile's acquisition of the MG brand in the past. The "VOLVO" brand, founded in 1927 in Nordic Sweden, enjoys an excellent reputation worldwide. The founders of Volvo emphasized car safety from the very beginning, earning it the title of the safest car in the world. Once the acquisition by China Ordnance Equipment Group is successful, it will first bring significant brand effects to Changan Automobile, enhancing its quality perception and recognition, ultimately achieving both fame and fortune. 2. Expand access to the market: Leverage Volvo's platform to enter Europe. Another purpose of China Ordnance Equipment Group's acquisition of Volvo is to use its platform to access Europe and enter the global automotive market. In recent years, domestic automakers have embarked on expansion paths to enter the global automotive market, but most have taken the mid-to-low-end route and faced difficulties under the financial crisis. However, acquiring Volvo provides Changan Automobile with a different path to enter Europe and the world.
I've been following the automotive industry for a long time and am quite familiar with the Changan Volvo matter. Essentially, it's a joint venture between China's Changan Automobile Group and Sweden's Volvo, established around 2010. The goal was to leverage Volvo's safety technology and Changan's strong foothold in the Chinese market to collaboratively produce locally manufactured Volvo models, such as the domestically produced S90 and XC60. This partnership helped Volvo expand its sales in China, reduce vehicle costs, and make premium cars more accessible to consumers. I recall that the early stages of the joint venture were somewhat affected by Geely's acquisition of Volvo, but the Changan collaboration remained focused on China, boosting local employment and supply chains. Today, they produce more eco-friendly models with high factory standards, appealing to those who prioritize quality. However, challenges persist, such as intense competition and the need to maintain original design integrity without dilution.
