Congress is debating a legislative ban on carmakers from China Volvo Cars, a Swedish carmaker owned by a Chinese company that has a factory and material sales in the U.S., is no stranger to straddling geopolitical divides. But it is endeavoring its biggest balancing act yet. After years of challenges, with more pain on the way, Volvo’s plan for reviving its fortunes rests on a new generation of cars that will lean in to both its Chinese ownership and the American consumer—even as Congress debates a legislative ban on Chinese cars.
In a recent interview, veteran Chief Executive Håkan Samuelsson told The Wall Street Journal that Volvo wants to lower costs by sharing more parts with Geely, its majority owner, while also protecting cars sold in the West from being accessed by China. "Our cars in China will be much more Geely-based, while Europe and America will have locally developed Western software systems. But in mechanical parts, why not? Why shouldn’t cars in Europe have the same brake caliper or the same air-conditioning compressor as cars in China? And if we can find such common components, we can lower the cost of the hardware."
Samuelsson noted Volvo received approval from the Commerce Department after proving it is "definitely not a Chinese company" regarding data handling. He hopes regulators see Volvo in a different context than newcomers like Polestar. "They could be, but I think [Chinese automakers] really need to be good citizens and build the cars in America, develop the cars in America, use American suppliers."
On the U.S. market, Samuelsson said consumer willingness is "very depressed" but plans to increase production at the Charleston factory, including bringing in the XC60 and building more multifuel and larger SUVs for American consumers.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing