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Discussion Starter · #1 ·
I absolutely disagree with this article.

Volvo needs to INCREASE sales volumes and production volume not decrease it and become even more niche!!

Hopefully Volvo's new owners will be determined to increase product volume as well as the number of products offered by Volvo as utilise Volvo as a worldwide premium brand kindof like the VW expansion of Audi with more types of models and increased volume. Volvo seems to drastically underachieve in terms of sales volumes.

Further, there is so much speak of the Chinese not having the experience to run a worldwide car brand. Erm...hello....Volvo does!!! The chinese arent going to replace the whole management, rather keep people in place who are experts ie employ the right people! Duh!!

If you look at Chery's plans with Quantum for new worldwide car brand, they are currently and have recruited consultants and experienced industry personnel to guide the new venture. The new owners of Volvo just need to keep and recruit further experienced management at Volvo. If the chinese are wise, they will expand volvo's lineup and volume and maximise the potential of the Swedish engineered Swedish alternative premium brand.

http://motoring.asiaone.com/Mo....html

Volvo, Saab must slim, go niche: experts

Thu, May 14, 2009
AFP

STOCKHOLM, Sweden - Sweden's auto industry will survive but will need to cut jobs and build more niche products to do so, experts said on Wednesday.

The country's leading automakers, Saab and Volvo, have been put up for sale by their US owners General Motors and Ford, leaving a question mark over the future of the industry.

Saab is currently engaged in a legal reorganisation process similar to bankruptcy protection.

But two studies on the Swedish auto sector say that while job cuts may be necessary to keep the car companies competitive, the industry can continue to be a key part of the economy, which represents 14 percent of the country's total exports.

A report by the Swedish Agency for Growth Policy Analysis said the country's car industry was not productive enough when compared to 29 of its foreign rivals.

"Sweden has a fairly low productivity level compared to the other 29 countries (in the study)," said one of its authors, Peter Vikstroem.

"The future seems bleak considering those figures, that's one estimation why we have this crisis. There are some structural problems (within the industry)," he added.

Vikstroem pointed to Sweden's low share of world automotive exports in relation to the number of people employed in the industry.

A separate study by the Swedish Agency for Economic and Regional Growth and the consulting firm WSP found some 190,000 people are employed in the automotive sector out of Sweden's 4.5 million-strong workforce.

Only Germany and Slovakia have a higher percentage of their active workforce employed in automotive-related jobs.

"There is overcapacity in the sector ... a limited demand compared to production (levels) because people are buying fewer cars," said Maria Lindqvist, one of the analysts behind the report.

She said, however, that the Swedish automotive industry could survive, but said it should "focus on certain niche products, specific parts" and not necessarily produce the entire car.

Vikstroem said any job losses from the auto industry could free up skilled labour for growth industries specialising in new environmental and energy technology.

"It could be one viable growth engine in the future, especially if you consider the amount of investment needed in this sector if we want to reach the climate goals of reducing CO2," he said
 

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Re: Volvo needs to become niche article - WRONG! (Shimon)

Quote, originally posted by Shimon »

Further, there is so much speak of the Chinese not having the experience to run a worldwide car brand. Erm...hello....Volvo does!!! The chinese arent going to replace the whole management, rather keep people in place who are experts ie employ the right people! Duh!!

Quote, originally posted by Shimon »
If you look at Chery's plans with Quantum for new worldwide car brand, they are currently and have recruited consultants and experienced industry personnel to guide the new venture. The new owners of Volvo just need to keep and recruit further experienced management at Volvo. If the chinese are wise, they will expand volvo's lineup and volume and maximise the potential of the Swedish engineered Swedish alternative premium brand.

But how are you sure the Chinese are going to do either of these?

Plus, the key to Volvo staying healthy is profits. Chasing after volume may help or be a detriment to that.
 

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Discussion Starter · #4 ·
"Chasing after volume may help or be a detriment to that"

That's a fair point. From my time at a certain Japanese manufacturer, new models rushed to production and rapidly increasing volume both led to spirally warranty costs, lower quality and damage to brand image. If you make more cars but they each have diminished profits or loss due to warranty then there is no point making them

As the Swedes say..."hurry up slowly" However, volvos enlarged product line and higher volumes are a must.

S
 

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Re: Volvo needs to become niche article - WRONG! (Shimon)

She said, however, that the Swedish automotive industry could survive, but said it should "focus on certain niche products, specific parts" and not necessarily produce the entire car.

Great. someone else who doesn't know a damn thing about the car business.
Carmakers don't make entire cars anymore. Most of the parts come from suppliers and are bolted together at the assembly plant. It's cheaper to do this,but leaves you vulnerable to quality issues.

Personally, I don't think Volvo or SAAB could produce any fewer parts of their cars than they do. This would just weaken the brand.
Also, Volvo isn't a niche maker like Mini. It needs to offer a full range of products because its primary customers,families, need different types of vehicles.
 

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Re: Volvo needs to become niche article - WRONG! (VolvoMax)

Quote, originally posted by VolvoMax »
She said, however, that the Swedish automotive industry could survive, but said it should "focus on certain niche products, specific parts" and not necessarily produce the entire car.


Automotive industry is not synonymous with car manufacturers. It includes suppliers such as Haldex and Ohlins. So I don't think she means that Volvo or Saab should manufacture cars for niche markets. My read is that she's saying the Swedish automotive industry could survive by making parts, especially high value niche components, instead of manufacturing whole cars.
 

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Re: Volvo needs to become niche article - WRONG! (Calhon)

Quote, originally posted by Calhon »


Automotive industry is not synonymous with car manufacturers. It includes suppliers such as Haldex and Ohlins. So I don't think she means that Volvo or Saab should manufacture cars for niche markets. My read is that she's saying the Swedish automotive industry could survive by making parts, especially high value niche components, instead of manufacturing whole cars.


Yes,but that would leave Volvo and SAAB dead.
Considering that both those companies buy the majority of Swedish auto parts the suppliers would probably follow them into oblivion.
 

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Re: Volvo needs to become niche article - WRONG! (VolvoMax)

Quote, originally posted by VolvoMax »


Yes,but that would leave Volvo and SAAB dead.

Or maybe just the manufacturing of cars in Sweden.

Quote »

Considering that both those companies buy the majority of Swedish auto parts the suppliers would probably follow them into oblivion.

... unless the industry restructures to supply parts and components internationally to other car manufacturers as some companies, such as Haldex, already do. The emphasis would have to be on high value components that require sophisticated technologies and highly skilled workers. For example, I believe Sweden wants to be a significant player in high-tech batteries for hybrids and electric cars.
 

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Re: Volvo needs to become niche article - WRONG! (Calhon)

Quote, originally posted by Calhon »


Or maybe just the manufacturing of cars in Sweden.

Possibly. Although relocating all Volvo's facilities elsewhere would be very very costly.

Quote, originally posted by Calhon »

... unless the industry restructures to supply parts and components internationally to other car manufacturers as some companies, such as Haldex, already do. The emphasis would have to be on high value components that require sophisticated technologies and highly skilled workers. For example, I believe Sweden wants to be a significant player in high-tech batteries for hybrids and electric cars.


Another possibility. However, there are plenty of suppliers out there already.
 

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Re: Volvo needs to become niche article - WRONG! (Sausca)

Quote, originally posted by Sausca »
Volvo IS a niche vehicle.

1. 300,000+ people outside of US and many/most of 100,000+ people in US would disagree with you...
I would rather use terms like "smaller". Volvo is definitely a "main stream" manufacturer among everyone I know personally.

2. Define the "niche".
 

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Re: Volvo needs to become niche article - WRONG! (gascos80)

Gassy, you are out to lunch as usual. (a) Volvo is not close to 100,000 units in the US; (b) read Max's posts and get real about who the US Volvo customer is; (c) if you got run over by a Volvo you would think it was cool; (d) the Volvo niche in the US is a dull suburban consumer, usually female on the way to a soccer game.
 

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Re: Volvo needs to become niche article - WRONG! (Sausca)

Quote, originally posted by Sausca »
(d) the Volvo niche in the US is a dull suburban consumer, usually female on the way to a soccer game.

Damn, I thought the niche was professors. I'm outta here.
 

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Re: Volvo needs to become niche article - WRONG! (Sausca)

I am a city dwelling male, and repeated Volvo customer, so as my brother in law and my father and my daughter's boyfriend and my male friend sergeon and...

I consider myself rather cool, my brother in law can make 5 out of ace from 100 feet easily with his shotgun, and a good sports hunter and fisherman, my friend sergeon plays semi-professional basketball at the age of 60 and makes 7 figures...

I failed to find a va...na on any of us...

What does it make us? Damn...


2007 sales - 106K US, 460K - worldwide
2008 - 73K US, 375K worldwide

I am not that far off, ya no...
 

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Re: Volvo needs to become niche article - WRONG! (gascos80)

Encino my friend is not the city, it's the VALLEY!
 

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Re: Volvo needs to become niche article - WRONG! (JRL)

Au contraire my friend, Au contraire

I live in very urban part of Encino with the typical ortogonal street planning, on a 4-lane street with the center divider and significant traffic from 5 am till 11 pm.
I take bus and subway to work, walk to the local shops and joints and drive only to the off-site meetings, or to the university.

I work in Downtown, so I am as much city dweller as it can be...
 

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Re: Volvo needs to become niche article - WRONG! (gascos80)

Quote, originally posted by gascos80 »


2007 sales - 106K US, 460K - worldwide
2008 - 73K US, 375K worldwide

I am not that far off, ya no...

Oh yes you are. At this rate Volvo will be lucky to sell 35,000 cars out of 9,000,000 in the US.

May 1 (Reuters) - Following are Volvo U.S. sales of cars
and light trucks in April 2009 versus the same year-earlier
month and for the year to date.
April 2009 April 2008 % Change
All Vehicles 4,503 7,138 -36.9%
Domestic Car 0 0 N.A.
Domestic Truck 0 0 N.A.
Import Car 3,327 4,474 -25.6%
Import Truck 1,176 2,664 -55.9%
Dom+Imp Cars 3,327 4,474 -25.6%
Dom+Imp Trucks 1,176 2,664 -55.9%
Domestic Vehicles 0 0 N.A.
Imported Vehicles 4,503 7,138 -36.9%
Yr-to-Date Prev Year % Change
All Vehicles 17,127 31,942 -45.9%
Domestic Car 0 0 N.A.
Domestic Truck 0 0 N.A.
Import Car 12,451 20,179 -37.7%
Import Truck 4,676 11,763 -59.9%
Dom+Imp Cars 12,451 20,179 -37.7%
Dom+Imp Trucks 4,676 11,763 -59.9%
Domestic Vehicles 0 0 N.A.
Imported Vehicles 17,127 31,942 -45.9%
-------------------------------------------------------------
Percent changes are based on the daily sales rate, and
reflect 26 selling days this month vs. 26 in the month last
year, and 101 this year to date vs. 102 last year to date
Unit of Ford Motor Co (F.N).
 
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