Volvo to Cut Down its U.S. Lineup, V50 Among the First to go

With its U.S. sales steadily declining for 7 years now, Volvo has no choice but to radically rethink its strategy. The Swedish automaker is currently offering nine models in the States or about as many as Volkswagen does, but it sold almost five times fewer cars than the Germans in 2010.

Consequently, the Swedish brand, which is now owned by China's Geely, has decided to significantly reduce the number of models in its North American lineup and concentrate on best-selling vehicles in an effort to increase sales.

“Five or six is probably a good number”, said Doug Speck, head of Volvo’s operations in the U.S., in a telephone interview for Bloomberg. “We have to focus on the key segments with significant volume potential”.

Mr. Speck confirmed that the V50 estate is sure to go, although didn’t specify exactly when, saying that dealers will be notified first. The manufacturer hasn’t decided yet which other models will be phased out, but it will definitely keep the S60 sedan and the XC60 and XC90 crossovers, he added.

Volvo will also try to boost sales with more advertising and expects “double-digit” percentage growth in the U.S in 2011.

As for the near future, Mr. Speck said that Volvo will introduce hybrids and all-electric cars, but declined to say if it will bring diesels to America.

By Csaba Daradics

Source: Bloomberg

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Ford Confirms Deal with China's Geely on Volvo Sale

While General Motors is still trying to figure out what it's going to do with its Saab division, Ford Motor Company announced today that it has settled all substantive commercial terms with China's Geely Holding Group Company Limited on the prospected sale of its Volvo unit.

Ford added that while some work still needs to be done before the deal is sealed such as final documentation, financing and government approvals, the company anticipates that a definitive sale agreement will be signed in the first quarter of 2010, with closing of the sale likely to occur in the second quarter of the same year.

"The prospective sale would ensure Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise, while enabling Ford to continue to focus on and implement its core ONE Ford strategy," Ford said in a statement,

The Detroit automaker added that it would continue to cooperate with Volvo Cars in several areas after the sale, but it does not plan to retain any shares in the business.

It is said that Geely is offering the U.S. automaker somewhere around $2 billion dollars for Volvo Cars which is less than a third of what Ford paid for the Swedish brand a decade ago.

With the prospected sale of Volvo, Ford will offload the last brand in the Premier Automotive Group that also included Jaguar, Land Rover and Aston Martin.

Revised Geely GT Coupe Concept Flies into Shanghai

Alas, a Chinese car with a unique design that does not resemble any other vehicle around. As we reported earlier, Geely's design team refreshed the GT Coupe Concept's looks for the Shanghai Auto Show and while they were at it, they also added a pair of Lamborghini-style scissor doors that open without the use of a key and a working interior which is somewhat less impressively styled than the coupe's exterior.

The GT Coupe, which was first seen at last year's Beijing Show, is powered by a V6 gasoline engine. Geely said that it is considering the development of a production version of the coupe under its new brand name, Emgrand, in the near future.

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Photos Copyright: UP

Geely GE: Live Photos of China-Made Rolls-Royce Phantom Lookalike

They may say that imitation is the best form of flattery, but we wouldn't bet that the uptight chaps over at Rolls Royce are feeling any sort of flattery upon viewing Geely Motors' luxury GE sedan at the Shanghai Auto Show. To say that the GE's exterior design is inspired from the Rolls Royce Phantom would probably be an understatement. The 5.29 meter or about 208 inches long Chinese limo is a tad shorter than its uber luxurious British counterpart but whereas the Phantom gets a normal rear seat bench, the GE has a single rear chair fit for a king, queen or maybe even a member of the Chinese government...

Not surprisingly, the Geely GE Limo does not get a massive V12 engine but instead it goes by with an 'everyday' V6 gasoline engine that's good enough for an output of 278-horsepower and 340Nm of torque that is channeled to the rear whees via an automatic transmission.

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Pics copyright: UP

Shanghai Preview: Geely EC718 Sedan and Hatchback

Chinese automaker Geely has published a new set of photos of its all-new EC718 sedan and hacthback models that are destined to make their world debut along with 20 or so other production and concept cars from the firm including the GT Coupe at the Shanghai Auto Show. The inelegantly named subcompact four-door sedan and five-door hatchback will be offered in the Chinese market with numerous four-cylinder gasoline engines. Geely seems to be quite optimistic about the future of the two new Focus-sized models as the company said that it plans to sell both cars in many markets outside China.

Supped Up Geely King Kong

We’re not kidding; this compact sedan from Chinese automaker Geely is actually called King Kong. When a car bears a name like that, you can’t possibly expect any tasteful mods whatsoever. There are plenty of elements worth mentioning on the customized King Kong but we’ll stop at the “VIP” and “Mugen” badges that adorn the car’s rear-end, right under the “Beam me up Scotty” spoiler wing. -More pics after the jump

Via: Le Blog Auto , Source: Autohome

Boo, It’s the Geely Aoo...

Our first thought upon seeing the Geely Aoo was that someone in China managed to create the perfect movie car for the manic masked killer from the Scream Trilogy. Well, we were wrong, as this freak of a car will actually go on sale in China after its debut at the Guangzhou Auto later this year. -Continued after the jump

The goggle-eyed Geely Boo –er, we mean Aoo, is said to be powered by a 3-cylinder petrol unit. But who cares; it’s not as if Geely’s going to sell it outside China. You know something, maybe its better if Chinese automakers stick to replicating European or Japanese cars rather than trying to design them…

Via: Le Blog Auto , Source: chinacartimes