Volvo Mulls China-Made Cars for U.S.

Volvo is a Swedish car company with a Chinese shareholder and a German CEO.  The company already builds a small number of cars in China for the Chinese market, but is now considering a major ramp-up in production in a new assembly plant (in Chengdu, where it's owner Geely has a major new plant), not just for the Chinese market, but also for the export market including the U.S.  Currently, American consumers readily purchase made-in-China consumer goods, but no one is selling a made-in-China automobile yet, and there is some concern that Volvo's customers may shy away from a Chinese-made vehicle.  This strategy is being driven partly by the desire to reduce currency risk.  Volvos produced in Sweden and Belgium are priced in Euros, and the exchange rate has eaten into Volvo's profitability.  The Chinese currency, the yuan, is pegged to the dollar and would provide Volvo with more protection from exchange rate swings.


Volvo Mulls China-Made Cars for U.S. - WSJ.com