Volvo Cars 2018 top stories in China

Shanghai (Gasgoo)- Volvo Cars's sales rose 12.4% to 642,253 cars in 2018, compared with the same period a year ago. This is the fifth consecutive year of global sales record for Volvo Cars.

Sales in China grew by 14.1% to 130,593 cars during the year, as compared with the same period the year before. The demand was spearheaded by the locally assembled XC60 and the S90 models.

Gasgoo hereby summarized the top stories for the automaker that happened in China last year as below.

Former director of Volvo Cars Asia Pacific R&D joins Valeo as China CTO

Gu Jianmin, former director of Strategy, Advanced Engineering & Concept Development, Volvo Cars Asia Pacific R&D, joined Valeo, a global automotive supplier headquartered in France, as its China Chief Technology Officer, effective from January 1, 2018.

Before joining Valeo, he was responsible for four major businesses of Volvo Cars's Asian-Pacific region from September 2013 to December 2017, namely, the complete vehicle engineering, the chassis and active safety system (including autonomous driving), the cost management as well as the strategy, advanced engineering and concept development. From 2000 to 2013, he was employed by Ford Motor and Changan Automobile, boasting rich experience in R&D of vehicle attributes, chassis and CAE.  

Volvo Cars's European plant to produce vehicles for Lynk & Co

In the middle of January, 2018, An Conghui, President and CEO of Geely Auto Group, disclosed that the Lynk & Co-branded vehicles would be made by its Volvo car unit at the latter's plant in Europe in the preliminary stage after Lynk & Co stepping into the continent.

The Geely-owned Swedish carmaker currently has two European factories in Sweden and Belgium. At present, the Lynk & Co-branded vehicles are produced at a Volvo-operated plant in Taizhou in China.

However, Volvo Cars had decided to delay building the vehicles at its plant at Ghent in Belgium because of increased macro-economic uncertainty, a spokesman for the carmaker said on November 23.

China's Alibaba agrees AI deal with Daimler, Audi and Volvo

Chinese online retailing titan Alibaba announced on April 23 that Alibaba A.I. Labs, the company's AI unit, would offer its “AI + Car” system to global automakers including Daimler, Audi and Volvo for deployment in China, for the first time to supply AI technologies for home-to-vehicle connectivity.

The system allows people to talk with their cars through Tmall Genie, Alibaba's digital assistant device. Besides, car owners are able to remotely operate the car's door locks, turn on the air conditioner, plan a driving route and calculate a trip time.

Alibaba said it will also let users perform certain diagnostics on a car's engine and battery, check the fuel level and pinpoint a car. Using voice recognition technology, the device will enable people to voice their commands.

Volvo Cars cuts prices on all imported models after China announces tariff slash policy

China's Customs Tariff Commission of the State Council released an announcement on May 22 saying China would reduce its tariff on part of imported autos to 15% from 25% starting July 1.

Volvo responded the announcement by publishing its price cuts plan on May 24. The price of the Volvo XC90 flagship premium SUV and the Volvo V90 Cross Country luxury crossover wagon would be decreased by RMB100,200 and RMB45,000 respectively. With the suggested retail prices falling, the vehicle purchase tax for corresponding models would be cut at a same percentage.

Volvo Cars adjusts prices of some auto parts

Volvo Cars claimed on July 2 that the prices of 11,693 types of auto parts would be adjusted from then on with the biggest price cut up to 55%. Of that, the price reduction caused by the tariff cut policy announced by China in May, involving 10,941 types of auto components for 79 tax items in total, will be reflected in the retail prices of relevant products.

In the meantime, prices of some commonly-used components and accessories that was not included in the governmental tariff cut's list, would also be synchronously adjusted, including aluminium-alloy rim, cabin air filter, brake disc, brake pad, water pump and wiper blade, etc.

Volvo Cars has no current plan for IPO

Volvo Cars would press ahead with an IPO in the rest days of 2018, some media outlets reported on August 16. The company's primary listing would be in Stockholm and the secondary listing was planned to proceed in an Asian financial center—mostly likely Hong Kong—at a later date, people with knowledge of the plans said.

Potential investors said that it would hit the $30 billion valuation sought by Volvo Cars’ Chinese parent company Zhejiang Geely Holding Group.

FT analysis suggested that a flotation of 15% of the company's equity in Sweden would raise $4.5billion, and make the IPO the largest listing on the Swedish stock exchange since telecoms group Telia floated in 2000.

Reuteur reported on September 10 that Volvo Cars and its Chinese owner Geely had postponed plans to float shares in the Swedish carmaker due to trade tensions and a downturn in automotive stocks.  

Volvo and Baidu team up to mass produce self-driving EVs in China

Volvo Cars and Chinese internet giant Baidu forged partnership to develop and mass produce autonomous electric cars in China, the two companies announced on November 1.

Under the agreement, both parties would jointly develop an all-electric highly-automated model with the Swedish carmaker offering its know-hows of advanced technologies in automotive industry, while Baidu providing its autonomous driving platform Apollo.