In recent years Sweden’s car makers have staked out an uneasy position above the mainstream brands but below the premium European marques. With profits elusive, both were recently sold by their American owners. And both are about to introduce new sedans that they badly need to sell well. How does the pricing of the new 2011 Volvo S60 and 2010 Saab 9-5 compare? Has either been priced aggressively to pump up sales?
Around the world, drunk driving is a deadly problem without an easy solution. After all, the link between driving under the influence and generally screwing up your life (and the lives of others) has been conclusively proven, and yet the problem continues. What to do? Volvo’s answer: buy a Volvo and spend €850 (plus up to €90 for installation) on “Alcoguard,” a dealer-installed optional breathalyzer ignition interlock. With this system in place, drivers must blow into an interlock, proving that they are beneath the legal blood-alcohol-content limit before the vehicle will start.
We’ve already laid into Saab’s new 9-5 for launching with with only the 300hp, AWD “Aero” trim level, for which the former GM division wants a base price of about $50k. That asking price just became a little more ridiculous as Volvo has announced base pricing for its new S60 sedan at $37,700. And guess what? That’s for the 300 hp, AWD “T6” version as well, which is also the only trim level available at launch. Volvo 1, Saab 0. UPDATE: OK, OK, we admit that Volvo’s “win” here is minimal. A lower base price does potentially bring in more buyers, but on an apples-to-apples basis, the two Swedes are pretty much a wash, price-wise. Which still leaves plenty of room for debate… and inevitable references in each others reviews. Besides, both models will offer cheaper versions over time. Does this make us think Saab’s $50k fan tax is any less ridiculous? Not a bit. But then, only time and test drives will truly tell if Saab’s gamble has paid off.
Not so long ago Volvo attempted to poach some customers from BMW by offering high-performance R variants of the S60 sedan and V70 wagon. Then it decided these weren’t selling well enough to justify the expense of developing them. So now we’re offered “R-Design” variants instead. These involve larger wheels, a mildly stiffened suspension, and a slew of styling tweaks. Not part of the recipe: additional horsepower. Halfway through the 2010 model year the XC60 gained such a variant. All sizzle, or is there some steak here as well?
Within the Renault-Nissan alliance, Carlos Ghosn must have felt like he was the king. He and Louis Schweitzer were the architects of the fourth largest car making entity in the world. Then the Board of Directors chopped his legs out by vetoing his deal with Roger Penske to supply Saturn with Renault cars and, suddenly, Carlos Ghosn had a very sharp lesson. In the Renault-Nissan alliance, no-one is too big to fail. So when it came to his re-election as CEO, no-one thought it was a cut and dried affair. Well, on Thursday the 29/04/2010, Mr Ghosn received his second term at Renault. And he set out some targets to show the BoD he means business.
Reuters reports that over his next 4 year term, Ghosn envisions the following: (Read More…)
No big deal in China is done until it’s signed and sealed – by the Chinese government. In the case of Volvo, there won’t be any Hummeresque killing me softly. Geely’s deal to buy Volvo from Ford, reached last month, will be waved through the (necessary) approval process. (Read More…)
During the courtship stage between Geely and Volvo, and after their recent nuptials in Gothenburg, Sweden, we often raised the matter of Chang’an. Chang’an has had a joint venture with Ford since 2001. Under the JV, they also make Volvos in China, the S40 and S80, to be exact. They don’t make them in large numbers. 22,405 Volvos were sold in China last year, up nearly 80 percent compared to 2008. The S40 has been on the Chinese market since 2006. The S80L, a long version of the S80, was introduced last year. Chang’an had been in play as a suitor for Volvo, but bowed out.
What will happen to Chang’an’s Volvos? (Read More…)
Some people think that Geely’s acquisition of Ford’s Volvo is driven by the desire for sorely needed know-how for China’s auto industry. Who thinks that way is “totally underestimating” the technological advances made by businesses in the Far East. This comes from none less than GM’s Nick Reilly. If anyone understands the true capabilities of the Chinese Auto industry, then it’s Reilly. He’s been there, in charge of a big part of China’s auto industry. He knows: Geely’s Volvo purchase can mean the great leap forward for Chinese car exports. (Read More…)
As predicted by TTAC, the sale of Volvo from Ford to China’s Geely will be signed this Sunday. A Volvo spokesman confirmed this today to Reuters. Details of the deal will be announced at a news conference in the Swedish city of Gothenburg. (Read More…)
If you think Volvo will stay chaste and out of the grips of the Chinese, abandon all hope. The Chinese are coming to take away your Svenska flikka away for good. Chinese Vice-President Xi Jinping is on his tour of Europe. This weekend, he will arrive in Sweden. (Read More…)
China’s vice-president Xi Jinping (above) is packing his bags for a state visit to Sweden, where he and his entourage will arrive this Saturday. He doesn’t go there to watch pretty blondes. (He doesn’t fancy blondes, see picture below.) Xi Jinping wants to come back to Beijing with a Swedish souvenir: A signed contract between Ford and Geely that will seal the sale of Volvo. (Read More…)
We’re ready to seal the deal. If the deal fails, the problem is not on our side. We have not violated any part of the agreement. The situation is changing constantly…and the process of the negotiation is very tough. We will put as much effort as we can. I hope the deal can be done
Geely Zhejiang Chairman Li Shufu is sounding defensive in today’s Wall Street Journal, as his firm’s deal to buy Volvo from Ford drags on. And he won’t say what’s holding things up on Ford’s end either. After all, the money is there, and Ford (allegedly) isn’t sweating the IP details… so where’s the beef? Ford spokesfolks say the Blue Oval’s
position hasn’t changed since 23 December last year. As Ford and Geely said at the time—and as we’ve continued to say—we expect to sign a sale agreement in the first quarter.
That gives the Volvo-Geely deal two more weeks, not long considering the deal has been over a year in the making. So why is Li Shufu getting so antsy? Is this end-of-deal nerves, or is the Geely-Volvo deal going the way of HUMMER-Tengzhong?
China’s Geely and Ford say they are on track to sign a deal on Volvo, says Reuters after checking back with the players. Spokesmen for Ford and Geely said their companies still plan to sign on the dotted line by the end of the month. Then, the deal would close sometime in summer.
Doubts were raised by China Daily, China’s government-owned and English speaking newspaper. They speculated that “financing and technology issues could delay Zhejiang Geely Holding Group, the parent of Geely Automobile, in its plan to acquire the Volvo brand from US automaker Ford Motor Co,” after talking to “sources familiar with the matter.” The same sources said that “the chances of a short-term deal now looks bleak, unless the two sides make major concessions.” At first glance, this smells like some last minute arm-wrestling, not too foreign to anybody living in China. However, China Daily sees two problems, far beyond the usual haggling: (Read More…)
Reuters (which has been all over the Volvo-Geely deal) reports that Zhejiang Geely Holding has money “in the bank account,” to purchase Ford’s Volvo brand, citing Swedish press reports. And yet, despite having reportedly given Ford guarantees about the financing of Volvo’s business plan, and scheduled a formal deal signing for last month, a deal has yet to emerge. Last week, Geely’s chairman Li Shufu told Reuters from the sidelines of the National People’s Congress in Beijing that “we haven’t reached a final agreement so far,” but “everything is moving as planned.” Geely has also been talking up its “only one foreign brand” strategy and “new energy” car plans, while Volvo reps tell AM Online that a deal will be done by March 31 and that Chinese market access will save the brand [via The WSJ [sub]]. In fact, the only party involved that’s not issuing a steady stream of PR about the upcoming deal is Ford. Could the Blue Oval be getting cold heels?
Should you be working at a Renault (or Nissan) outfit that is not directly involved in the making and selling of cars, be on the lookout for people from headquarters. Renault is combing its assets all over the world for “non-strategic” ones that could be sold off to raise cash. (Read More…)
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