Saturday | March 08, 2008

Volvo plans to have a US plant

Volvo remains positive about having a plant for its cars in the United States as its parent company Ford Motors pulled back the regional corporate structure plan and instead went ahead on establishing a homogenous company for the American market.

Such changes paved way for the Swedish automaker to come out with more cars and sport utility vehicles for its U.S. users, according to Frederick Arp, who is the chief executive of Volvo.

“It’s looking more possible, more promising than in the past, given developments at Ford,” said Arp.

Today, Volvo remains to be the sole brand under the Premium Automobile Group of Ford, where the popular U.K. marquees Jaguar and Land Rover were used to be part of. With no other marquees under the group, Volvo has to work actively as a separate company from its parent Ford. The industrial and purchasing synergies between Volvo and Ford, however, stay the same. For most part, Autopartswarehouse dismisses that Volvo Parts sale continues to surge as more volvo cars are introduced in the market.

“It’s logical to look at a setting up a manufacturing base in the U.S.,” said Arp. “But the real leverage only comes when you have a full supply chain nearby, comprising engines, transmissions and other key components. That is easy when you share platforms or modules with other vehicles made by a U.S. counterpart, in this case Ford.”

Source: The Wall Street Journal Online, Autopartswarehouse.
Posted by autopartswarehouse at 13:08:19 | Permanent Link | Comments (0) |