Jump to content
William Maley

Volvo News: Volvo Scraps Production Plans In An Effort To Dodge Tariffs

Recommended Posts

Back in the summer, Volvo opened its first plant in South Carolina where it would be producing the all-new S60 sedan. The original plan was to export half of the S60s built to other markets. But the current trade dispute between the U.S. and China has caused Volvo to change their plans.

Anders Gustafsson, president of Volvo Cars USA said at a meeting of the Automotive Press Association in Detroit that the automaker is changing the focus of the South Carolina factory to build S60s for the U.S. market. A small number of S60s will still be exported to Europe.

“We’ll go at this change not with a smile, but we know what we need to do. We have a global manufacturing structure that helps us maneuver in these tough waters,” said Gustafsson.

Back in July, Volvo announced that it would be sourcing XC60s destined for the U.S. from Europe. Previously, XC60s heading to the U.S. were coming from China. The move is expected to take place in January. Right now, Volvo is absorbing the 27.5 percent tariff on Chinese auto imports on the XC60. But Gustafsson said that is taking a big toll on their profits.

“We are absorbing the tariffs, and that really is what you saw in our financial results. But we can, under no circumstances, absorb tariffs in the long run. It’s huge,” he said.

The tariffs could also affect future plans for the South Carolina plant. Volvo is planning to have production of the next-generation XC90 take place in the U.S. beginning in 2022. This would increase the number of workers from 1,200 to 3,900. Volvo will export some XC90s to Europe, but also considering exporting some China at a loss.

"We might need to make the XC90 in another country too, if tariffs keep up," said Gustafsson.

Source: Bloomberg (Subscription Required), Motor Trend


View full article

Share this post


Link to post
Share on other sites

Trade wars can be good if approached in a professional way. Sadly the bully on the playground approach is Hurting US consumers, Hurting US Jobs and the wages of US citizens. Long term, less money in your pocket to buy stuff.

  • Upvote 1

Share this post


Link to post
Share on other sites
48 minutes ago, dfelt said:

Trade wars can be good if approached in a professional way. Sadly the bully on the playground approach is Hurting US consumers, Hurting US Jobs and the wages of US citizens. Long term, less money in your pocket to buy stuff.

The bully only cares about the bully and nobody else.  Hence why trade wars can be misused or abused by said bully.

  • Upvote 2

Share this post


Link to post
Share on other sites
1 hour ago, riviera74 said:

The bully only cares about the bully and nobody else.  Hence why trade wars can be misused or abused by said bully.

Sadly we seem to be in an era of Bully's around the glob.

Share this post


Link to post
Share on other sites
43 minutes ago, dfelt said:

Sadly we seem to be in an era of Bully's around the glob.

The darker the world gets the more I like the inside of my garage workshop.  And given the current state of the world...I am glad my shop doesn't have any windows...

Volvo is building some sweet looking Iron though, so I wish them well. 

  • Like 1

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




  • Social Stream

  • Similar Content

    • By William Maley
      The Chinese government is considering a proposal to reduce tariffs on U.S.-Built vehicles from the current 40 percent back down to the 15 percent before the trade war broke out between it and the U.S. Sources tell Bloomberg a proposal has been submitted to the cabinet to be reviewed in the coming days.
      This proposal stems from a trade summit in Buenos Aires where U.S. President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce on the trade war earlier this month. After the meeting, Trump tweeted out that "China agreed to “reduce and remove” tariffs on imported American-made cars, something China did not confirm at the time." Shares of various automakers including Diamler, Ford, and Tesla rose on the news.
      The trade war between the U.S. and China has taken a toll on automakers. Both BMW and Dimaler have warned of lower profits as tariffs have forced them to raise prices in China. Others such as Volvo and Ford have made changes to production and vehicle plans. 
      China's Finance Ministry didn't respond to Bloomberg's request for a comment.
      Source: Bloomberg

      View full article
    • By William Maley
      The Chinese government is considering a proposal to reduce tariffs on U.S.-Built vehicles from the current 40 percent back down to the 15 percent before the trade war broke out between it and the U.S. Sources tell Bloomberg a proposal has been submitted to the cabinet to be reviewed in the coming days.
      This proposal stems from a trade summit in Buenos Aires where U.S. President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce on the trade war earlier this month. After the meeting, Trump tweeted out that "China agreed to “reduce and remove” tariffs on imported American-made cars, something China did not confirm at the time." Shares of various automakers including Diamler, Ford, and Tesla rose on the news.
      The trade war between the U.S. and China has taken a toll on automakers. Both BMW and Dimaler have warned of lower profits as tariffs have forced them to raise prices in China. Others such as Volvo and Ford have made changes to production and vehicle plans. 
      China's Finance Ministry didn't respond to Bloomberg's request for a comment.
      Source: Bloomberg
    • By William Maley
      Auto shows tend to be the place that the majority of consumers get to poke around a number of new vehicles. So it seems a bit odd that Volvo will not have any vehicles for their LA Auto Show exhibit. What gives?
      “By calling the trade show Automobility LA, the organisers have recognised the disruption affecting our industry. We want to demonstrate that we got the memo and start a conversation about the future of automobility. So instead of bringing a concept car, we talk about the concept of a car. We will not win the ‘car of the show’ award this year, but we are comfortable with that. Because this is not a car show.” said Mårten Levenstam, responsible for product strategy at Volvo Cars in a statement.
      Volvo will instead use their exhibit to showcase its various connected services and tech partnerships. There will be interactive displays for its various connected services, the next-generation Sensus infotainment system with Google Android as the backbone; in-car delivery function via Amazon, Care by Volvo subscription, and more.
      Source: Volvo


      Volvo Cars to show nothing at Automobility LA
      Volvo Cars comes to Automobility LA this year with a world-first: not a single car on the stand.
      Instead the company will demonstrate its vision, redefining what a car can be.
      Since motor shows were introduced, the car has always been a centrepiece, on a rotating stage or covered under a silk sheet. Yet cars are changing, the industry is changing and so are the expectations of people who use cars. Volvo at Automobility LA reflects these changes.
      How consumers experience a car brand is today more important than chrome, leather or horsepower. So on the Volvo stand, visitors will look to the central space where they would expect to find a car, and instead see a simple yet surprising statement: ‘This Is Not A Car’.
      “By calling the trade show Automobility LA, the organisers have recognised the disruption affecting our industry,” said Mårten Levenstam, responsible for product strategy at Volvo Cars. “We want to demonstrate that we got the memo and start a conversation about the future of automobility. So instead of bringing a concept car, we talk about the concept of a car. We will not win the ‘car of the show’ award this year, but we are comfortable with that. Because this is not a car show.”
      In addition to this powerful statement, Volvo Cars will show a number of interactive demonstrations of connectivity services, such as in-car delivery, car sharing, its vision for autonomous driving as displayed in the Volvo 360c concept and the car subscription service Care by Volvo.
      “Our industry is changing. Rather than just building and selling cars, we will really provide our customers with the freedom to move in a personal, sustainable and safe way,” said Håkan Samuelsson, chief executive of Volvo Cars. “We offer our customers access to a car, including new attractive services whenever and wherever they want it.”
      Volvo Cars really believes in the power of strategic partnerships. With established tech companies like Amazon, Google and Nvidia, as well as with technology startups like Luminar and Zenuity, Volvo demonstrates innovative interaction with new types of partners.
      With the new company purpose Freedom to Move in a personal, sustainable and safe way, Volvo sets the direction for the future. By the middle of next decade, half of the annual car volume will be fully electric, one-third will be autonomous and Volvo will establish over 5 million direct consumer relationships.

      View full article
    • By William Maley
      Auto shows tend to be the place that the majority of consumers get to poke around a number of new vehicles. So it seems a bit odd that Volvo will not have any vehicles for their LA Auto Show exhibit. What gives?
      “By calling the trade show Automobility LA, the organisers have recognised the disruption affecting our industry. We want to demonstrate that we got the memo and start a conversation about the future of automobility. So instead of bringing a concept car, we talk about the concept of a car. We will not win the ‘car of the show’ award this year, but we are comfortable with that. Because this is not a car show.” said Mårten Levenstam, responsible for product strategy at Volvo Cars in a statement.
      Volvo will instead use their exhibit to showcase its various connected services and tech partnerships. There will be interactive displays for its various connected services, the next-generation Sensus infotainment system with Google Android as the backbone; in-car delivery function via Amazon, Care by Volvo subscription, and more.
      Source: Volvo


      Volvo Cars to show nothing at Automobility LA
      Volvo Cars comes to Automobility LA this year with a world-first: not a single car on the stand.
      Instead the company will demonstrate its vision, redefining what a car can be.
      Since motor shows were introduced, the car has always been a centrepiece, on a rotating stage or covered under a silk sheet. Yet cars are changing, the industry is changing and so are the expectations of people who use cars. Volvo at Automobility LA reflects these changes.
      How consumers experience a car brand is today more important than chrome, leather or horsepower. So on the Volvo stand, visitors will look to the central space where they would expect to find a car, and instead see a simple yet surprising statement: ‘This Is Not A Car’.
      “By calling the trade show Automobility LA, the organisers have recognised the disruption affecting our industry,” said Mårten Levenstam, responsible for product strategy at Volvo Cars. “We want to demonstrate that we got the memo and start a conversation about the future of automobility. So instead of bringing a concept car, we talk about the concept of a car. We will not win the ‘car of the show’ award this year, but we are comfortable with that. Because this is not a car show.”
      In addition to this powerful statement, Volvo Cars will show a number of interactive demonstrations of connectivity services, such as in-car delivery, car sharing, its vision for autonomous driving as displayed in the Volvo 360c concept and the car subscription service Care by Volvo.
      “Our industry is changing. Rather than just building and selling cars, we will really provide our customers with the freedom to move in a personal, sustainable and safe way,” said Håkan Samuelsson, chief executive of Volvo Cars. “We offer our customers access to a car, including new attractive services whenever and wherever they want it.”
      Volvo Cars really believes in the power of strategic partnerships. With established tech companies like Amazon, Google and Nvidia, as well as with technology startups like Luminar and Zenuity, Volvo demonstrates innovative interaction with new types of partners.
      With the new company purpose Freedom to Move in a personal, sustainable and safe way, Volvo sets the direction for the future. By the middle of next decade, half of the annual car volume will be fully electric, one-third will be autonomous and Volvo will establish over 5 million direct consumer relationships.
    • By William Maley
      Back i n May, the U.S. Commerce Department launched an investigation into car imports to determine the impact of car imports. The investigation falls under Section 232 of the Trade Expansion Act of 1962 which states "whether imports of automobiles, including SUVs, vans and light trucks, and automotive parts into the United States threaten to impair the national security." This could allow the Trump administration to levy tariffs as high as 25 percent on foreign-built vehicles.
      Yesterday, the Commerce Department submitted their draft report into the investigation. The Trump administration has 90 days to determine whether or not to move forward on various measures such as implementing tariffs if the report concludes that imports are a security threat. But Bloomberg is reporting that the administration is holding off on imposing new tariffs. Two sources tell the publication that top officials are considering revising plans due to the report. The sources also said that the report "would be subject to further changes."
      President Trump has been using the threat of tariffs as leverage during negotiations with trade partners. Already, Trump has promised not to impose any auto tariffs on Europe while the two work on a new trade deal. But a number of foreign governments and companies have said the tariffs would cause more harm. The National Automobile Dealers Association estimates tariffs would add $2,270 to the cost of U.S.-built vehicles and $6,875 to the cost of imported vehicles.
      It doesn't help that many in Trump's senior economic team believe slapping tariffs on imported cars is a bad idea. According to a report from Axios yesterday, "about every member of his senior economic team besides Peter Navarro believes this is a terrible idea."

      View full article
  • My Clubs

  • Recently Browsing

    No registered users viewing this page.

  • Reader Rides

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×