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3/10/12, 12:40 PM

Volve Future in China is Unclear

Written by Gaobin, Financial Times in Chinese Website. I translated from Chinese to English here now.

In China, there is an animal in the folk story called unlikeness to four other animals, which has the face like horse, the horns like deer, the neck like camel and the tail like donkey.

And this animal reminds the writer of Volvo which has been bought by Chinese private auto-vehicle company Jili.

Not long time ago, in Sanya, Hainan province, China, the boss of Jili announced that Jili was going to build up a joint venture with Volvo to follow the rules of the Chinese government. He said that according to the government policy, Volvo is the foreign brand, not Chinese, and so it has
to have joint company to have its production in China.

Auto industry is still controlled by the government in China and the government has not encouraged the merge of the complete vehicle any more. If Volvo succeed in building the factories in China as one of Chinese
brands, it could get the license easily and also have the benefits and the
supports from the government. However this is just a dream of Jili company.

Jili planned to build two factories in Chengdu and Chongqing, but so far both have not approved yet.

To be as foreign brand, it break the hope of Volvo to enter Chinese service car market.

Audi has built the fine image by taking the market of Chinese service car. It has made China as the biggest market for Audi.

After Jili bought Volvo, most employees of Chinese team left Volvo and people start to question how Volvo continues its culture and quality. It is still not clear that Chinese customers will buy so-called Jili-Volvo-built-together cars. We will see.

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