Damon Mcknight
Volvo is a Swedish car company that is currently owned by the Chinese company Geely. In 2020, more than 30,000 China-made cars were sold in Australia, with Volvo being one of the most popular China-made vehicles in the country. While all Australian-delivered Volvos are currently built in Sweden, the opening of three plants in China will soon see some models sourced from China.
| Characteristics | Values |
|---|---|
| Country of origin | Sweden |
| Current owner | Geely, China |
| Manufacturing locations | Belgium, China, Sweden |
| Australian-delivered cars built in | Sweden |
| Volvo XC40 manufacturing locations | Ghent, Belgium; Luqiao, China |
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What You'll Learn
Volvo's Chinese ownership
Volvo is currently owned by the Zhejiang Geely Holding Group, a Chinese company that owns over 15 other vehicle makers. Zhejiang Geely Holding Group is based in Hangzhou, Zhejiang Province, China, and acquired Volvo Cars in 2010.
Under Geely's ownership, Volvo has seen significant growth and advancements in both production and design, with a focus on sustainability, safety, and cutting-edge technology. In 2020, Volvo sold 166,617 cars in China, an increase of 7.5% from 2019, and sold a total of 661,713 cars worldwide.
Despite the Chinese ownership, Volvo's head office, product development, marketing, and administration functions remain primarily located in Gothenburg, Sweden. The company's main car production plants are located in Gothenburg (Sweden), Ghent (Belgium), South Carolina (US), Chengdu, and Daqing (China).
In recent years, Volvo has been taking steps to acquire full ownership of its manufacturing plants and sales operations in China. In 2022, Volvo signed an agreement with Geely Holding to acquire an additional 50% of the shares in Daqing Volvo Car Manufacturing Co., Ltd, and Shanghai Volvo Car Research and Development Co., Ltd. This move will strengthen Volvo's position in China, its largest market, and provide full control over its Chinese operations.
While some customers have expressed concerns about the association of the luxury Swedish brand with Chinese ownership, others have praised Volvo's recent advancements in design and strategy under Geely's ownership.
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Australian-delivered Volvos
Volvo is a Swedish automobile manufacturer that is currently owned by the Chinese company Geely. While the company has factories, dealerships, and offices across the world, not all Volvo models are manufactured in the same location. The production location of a Volvo car can be identified by its Vehicle Identification Number (VIN). For instance, if the VIN starts with the letter L, it means the car was made in China.
As of 2021, all Australian-delivered Volvo cars are built in Sweden. However, the opening of three plants in China, which will manufacture the company's new-generation 60- and 40-series cars, will likely lead to some Australian Volvos being sourced from China. The Volvo S90, for example, will eventually be sourced from China, according to Volvo Cars Australia communications manager Greg Bosnich. Nevertheless, Volvo has not confirmed if all Australian models will be built in China in the future.
The Volvo XC40, the smallest of all Volvo SUVs, is currently manufactured in Belgium at the Ghent plant, which is one of the busiest Volvo plants in the world, and in China at the Luqiao plant in the Zhejiang province. The Ghent plant serves the US and European markets, while the Luqiao plant serves the Chinese market and exports to other countries in continents like the Americas and Oceania.
The Volvo XC60, on the other hand, is manufactured in China. This information was confirmed by a salesperson to a potential buyer in 2019, who also mentioned that Volvo has invested heavily in its manufacturing and assembly plant in China.
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Volvo's global manufacturing system
Volvo is a Swedish company that is currently owned by the Chinese giant Geely. It has factories, dealerships, and offices across the world, including in China, Sweden, Belgium, and the United States.
The Volvo XC40, for example, is manufactured at the Volvo Cars manufacturing plant in Ghent, Belgium, and at the Luqiao plant in China. The Ghent plant is the original production facility for the XC40 and is one of the busiest Volvo plants in the world. It produces the largest volume of cars per year for Volvo and serves the US and European markets. The Luqiao plant in Zhejiang Province, China, serves the Chinese market and exports to other continents, including the Americas and Oceania.
In addition to the XC40, some Volvo models are produced in China, including the long-wheelbase S60 Inscription, which has been sold in the United States since 2015. The S90 sedan, which is also produced in China, has been exported to Europe via a new rail link. While all Australian-delivered Volvo cars are currently built in Sweden, it is considered "inevitable" by Volvo Australia's communications manager that the S90 models sold in Australia will eventually be sourced from China.
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Volvo XC40 manufacturing
The Volvo XC40 is the smallest of all Volvo SUVs, making it ideal for city driving. It is available in both electric and gas drivetrains and features state-of-the-art technology, creative storage solutions, and a panoramic roof. The easiest way to check the manufacturing location of your XC40 is by finding the vehicle's VIN number and running it through an online VIN decoder. The first letter or number of the VIN will tell you the production location. For example, if the first character is L, this means your car was made in China. If the VIN starts with YV1, it was built in Europe. The 11th digit indicates which manufacturing plant your vehicle was assembled at. For instance, if the digit is 2, the car was assembled at the Ghent Plant in Belgium.
Volvo is originally from Sweden but is currently Chinese-owned, with factories, dealerships, and offices across the world. All Australian-delivered Volvo cars are currently built in Sweden. However, the opening of three plants in China will soon see some models sourced from China. It is “inevitable" that the S90 models sold in Australia will eventually be sourced from China, according to Volvo Cars Australia communications manager Greg Bosnich. He stressed that all Volvo production facilities, regardless of location, use the company's global manufacturing system and meet Volvo's internal quality standards.
The Volvo XC40 is manufactured in Belgium at the Volvo Cars manufacturing plant in Ghent and also in China at the Luqiao plant in the Zhejiang province, close to the harbors of Shanghai. The Ghent plant is the original production facility for the XC40 and has produced this model since its release in 2017. It is one of the busiest Volvo plants in the world, producing the largest volume of cars per year for Volvo. The XC40s for the USA and Europe are built in Ghent, while the Luqiao plant serves the Chinese market and exports to other countries, including the Americas and Oceania.
In 2019, due to growing international demand, Volvo decided to produce the XC40 in China as well as Belgium. Volvo has invested heavily in its manufacturing and assembly plant in China, and the cars produced there are expected to be of the same quality as those made in Sweden.
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Australian car market
The Australian car market has seen a significant increase in the sales of China-made vehicles in recent years. In 2020, more than 30,000 China-made cars were sold in Australia, with brands like MG, LDV, Haval, and GWM gaining popularity. This trend continues the growing presence of Chinese automotive manufacturers in the Australian market, which has become the sixth-largest source of vehicles in the country, surpassing England.
One notable aspect of the Australian car market is the presence of Volvo, a Swedish-origin brand that is now Chinese-owned. While all Australian-delivered Volvo cars have traditionally been built in Sweden, the company's expansion into China has led to discussions about potential changes in production sources for the Australian market. Volvo has established three plants in China, and it has been predicted that the S90 models sold in Australia will eventually be sourced from these Chinese plants. This shift towards Chinese production is described as "inevitable" by Volvo Cars Australia communications manager Greg Bosnich, reflecting the increasing integration of Western brands with Chinese manufacturing facilities to supply Western markets.
The Volvo XC40, a popular model in the Australian market, is currently produced in both Belgium and China. The Ghent plant in Belgium primarily serves the European market, while the Luqiao plant in China exports to countries in other continents, including Oceania. The expansion of Volvo's production facilities in China underscores the company's global manufacturing strategy and its commitment to meeting internal quality standards across all production locations.
It is worth noting that the Australian car market has historically experienced some resistance to imported vehicles, particularly in the case of Toyota during the 1960s due to conflicting memories from World War II. However, Toyota has since become Australia's top-selling brand, outperforming Holden, which was once the traditional market leader. While there may be concerns about the country of origin for certain consumers, the increasing presence of Chinese-made vehicles in the Australian market highlights the competitive advantages offered by Chinese manufacturers in terms of pricing, quality, and equipment levels.
Overall, the Australian car market is dynamic and evolving, with a growing presence of Chinese automotive brands and a shift in production sources for established brands like Volvo. As the market continues to adapt to global trends and consumer demands, it will be interesting to see how these changes shape the automotive landscape in Australia in the coming years.
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Frequently asked questions
While Volvo is originally from Sweden, the company is now Chinese-owned and has factories all over the world. In 2021, all Australian-delivered Volvos were built in Sweden, but the company has since opened three plants in China, which will also build the company's new-generation 60- and 40-series cars. Volvo has not yet confirmed if all Australian models will be built in China in the future.
Yes, some Volvos are made in China. The Volvo XC40, for example, is made in Belgium and in China at the Luqiao plant in the Zhejiang province. The Ghent plant in Belgium is the original production facility for the XC40, but the company decided to produce the car in China as well starting in 2019 due to growing international demand.
According to Greg Bosnich, the communications manager for Volvo Cars Australia, all Volvo production facilities, regardless of location, use the company's global manufacturing system and meet Volvo's internal quality standards.
