In 2013, Volvo's global market achieved a growth of 1.4%, while the newly announced sales data in the first quarter of 2014 showed a significant increase, a year-on-year increase of 9.5%. After the introduction of new products, the release of new technologies and the successive launches, Volvo will target sales of 800,000 vehicles in 2020. In addition, Mr. Li Shufu, chairman of Volvo Cars, pointed out that Volvo Motors will strive to achieve the goal of selling millions of dollars a year.
Based on the annual sales target of 800,000 units, the company will continue to pursue the goal of one million vehicles and solve the problem of productivity. Recently, Lars Weber, Senior Vice President of Production and Purchasing at Volvo, stated: “The new production plant in Sweden has injected new productivity for us. Now our production is only 200,000, and we will reach 300,000 in the future.†In addition, CNC According to the relevant information, Volvo currently has 4 plants in the world, with a total capacity of 650,000 units. It will then set up a factory in Taizhou, China, and the total production capacity will reach 1.17 million as the rest of the plants are completed and expanded. It is mentioned that 80% of new capacity is provided by China.
Over the years, Volvo has been in a state of living beyond its means. It is understood that Volvo still lost 653 million U.S. dollars in the year before 2009 when it was acquired by Geely Holdings (2009). Since then, after many adjustments such as layoffs and integration of resources, the loss level has gradually decreased, and last year it achieved a basic balance between profit and loss. In good condition, this good start is due to the strong performance of Volvo in the Chinese market.
In addition, official Volvo Cars have officially announced that global sales will reach 800,000 units by 2020, which will double compared to current global sales. At the same time, Mr. Li Shufu, chairman of Volvo Car Corporation, put forward the long-term goal to target millions of annual sales. The achievement of these sales targets requires a reasonable production capacity layout, and the layout of these production capacities will also have to take precautions, and Volvo has placed a complete production capacity in the world.
At present, Volvo has four factories in the world, which are the Torslanda factory in Sweden, the Ghent factory in Belgium, the Daqing factory in China and the Chengdu plant in China. It is understood that Volvo will also set up a small car platform CMA in China, and will establish an entire vehicle production plant in Taizhou with an annual production capacity of 200,000 units. In addition, Mr. Hanken Samuelson, president and CEO of Volvo Cars Group, once stated that he will establish a vehicle factory in the United States, Volvo’s largest market in the world. He said: “If you plan for a long time, Volvo will consider setting up a plant in the United States. "This way, Volvo will complete the layout of its vehicle production base in four countries around the world.
For the factory in Sweden, Lars Weber, Senior Vice President of Production and Purchasing at Volvo, stated: "The expansion of Toslanda's factory will inject new productivity into our company. Now our output is only 200,000, and it will reach in the future. 300,000.This expansion clearly shows that Volvo insists on using Sweden as its own production base, as well as researching and improving the importance of automobile manufacturing."
For the global market, most of Volvo's plants in Sweden and Belgium were exported. However, due to the acquisition of Volvo cars by China Geely Holding Group, its production layout has undergone major changes. China will be another major production base of Volvo and will be responsible for exports to the global market. Previously, Volvo China Business CEO and Chairman of Daqing Volvo Automobile Manufacturing Co., Ltd. Tong Zhiyuan once expressed to China Netcom: “Daqing Plant, as a manufacturing and manufacturing base in Northeast Asia, not only faces the Chinese market, but will also face Northeast Asian markets such as Russia and the global market in the future. ."
After consulting related materials, it is found that Volvo currently has a total capacity of around 650,000 units worldwide, which is still far behind the annual sales volume of million units. This situation will also be improved after the local factories have been successively improved and expanded. The annual production capacity of the Swedish factory will be expanded from the current 200,000 production capacity to 300,000 units; the Belgian factory will reach a record high of 270,000 units in 2011. And 95% of the products are mainly used for export business. In the future, the total production capacity of the plant is expected to be further improved; and after the completion of the three automobile plants in China, the overall production capacity will reach 600,000 units, accounting for half of the total global production capacity. From this point, It can be seen that China’s market dominates Volvo’s global dominance; Volvo will also build a plant in the United States, another major selling country.
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