by "Wobbles the Mind" (wobblesthemind)
Published 06/23/2017 at 12:45
by "Wobbles the Mind" (wobblesthemind)
Published 06/23/2017 at 12:45
Tags: Geely-Volvo
STARS: 3
Who would have guessed the first major Chinese automaker to establish themselves in the US would storm in with four brands? By 2020 we will be seeing Lotus, Polestar, Volvo, and Lynk & Co as one major automaker however I’m wondering what Geely’s strategy will be when it comes to the parent brand of these four siblings. If my hunch is correct then rather than enthusiasts having an existential crisis of being turned into “Chinese Car Fanatics,” they’ll actually be ectastic “Swedish Car Fans.”
Lotus will continue as an entry-exotic sports brand. I’m certain new powertrains are on the way and a hybrid they will be. Even if production moves to China for future “high volume models,” Lotus will always be British.
Polestar becomes an independent electric vehicle brand with a performance focus. I just think that’s awesome!
Volvo is firmly establishing themselves as a very different, forward thinking, modern luxury brand. They still get “Polestar Engineered” models, but I think Volvo is making a better case than Cadillac, Jaguar, or Alfa Romeo for being a true German luxury rival.
Then Lynk & Co enters the US market as a tech, mobility, and design centric “mainstream” brand. Like phones, no model years, few options, and easy buying. Everything about the brand screams device instead of car and that’s where they need to be.
You all know by now that I’m very much a branding enthusiast. You also may have figured out that Im drawn to exemplary automotive interpendence. It’s the same way I compose music and live so of course I enjoy things that reflect my own values. Geely Automobile Holdings Ltd. is showing themselves to be the top-tier virtuoso of branding. I’m in absolute awe of them.
There is an underlying current of simplicity and modernity connecting all these brands. Two threads that Im watching be sewn into the already established cores of the heritage brands. The interdepence is perfection, even better than what Hyundai Motor Group will ever be able to establish. I believe Geely will be the first major automaker (outside Tesla) to establish their cars as “devices” instead of “machines.”
I understand now why Volvo was such a trash talker .
My expectation is Geely having Volvo head over this collective, if they haven’t formally announced that already. What I mean is that when we see the combined US sales figures of all brands rather than having the reports say “Geely Auto” they will read as “Volvo Group.”
Geely Auto Holding Ltd. > Volvo Group > Lotus - Polestar - Volvo Cars - Lynk&Co.
Everyone will see the group as being Volvo/Swedish rather than Geely/Chinese. Volvo is the director while Geely is the producer. It’s the director’s vision which defines the product while the producer’s effort influences the product’s success. Think JLR compared to Tata.
If you haven’t already, learn to love the Swede. Though Volvo was number 9 on my ten favorite brands list, I think the bottom half of those ranks are about to have a huge revision.
"fintail" (fintail)
06/23/2017 at 12:55, STARS: 0
I wonder if these firms (Lynk cars on these shores in 2 and a half years? nah, too much of this reads like propagandistic corporate speech) are running in the black yet, or what would make them hit that point. Volvo has seen an amazing evolution, but it aint free, and a lot of XC90s will have to be sold to recoup those costs.
Still iffy giving what in my eyes is de facto support of the reigning kleptocracy. But I suppose if the margins don’t exist, the funds don’t get transferred.
"Tekamul" (tekamulburner)
06/23/2017 at 12:56, STARS: 0
I’ll probably continue to be an “over my dead body” enthusiast.
"Yowen - not necessarily not spaghetti and meatballs" (yowen)
06/23/2017 at 12:58, STARS: 0
Thanks for this, well thought out! Volvo (for me) in recent months has gone from a faint consideration for a next vehicle, to WOW, your new cars are in some cases breathtaking, especially when looked at as a whole product. Handsome exteriors and beautifully sculpted and designed interiors. I think if they create sufficient awareness they’ll be a real thorn in the side of the old guard. Be it euro-luxury or Cadillac/Lincoln (who arguably are trying to figure out their place in market still, somehow they manage to be a new player in the market as well as having a case to be part of the “old guard”).
...oh and that Volvo pulling a boat out of the water, just give me that whole setup already.
"Future next gen S2000 owner" (future-next-gen-s2000-owner)
06/23/2017 at 13:02, STARS: 0
There will always be model years. I doubt Link & CO survives a copyright challenge from Ford.
"Amoore100" (amoore100)
06/23/2017 at 14:24, STARS: 0
Isn’t all of China a propagandist corporate speech?
"fintail" (fintail)
06/23/2017 at 14:40, STARS: 1
Pretty much. Heck, most corporate speech is the same, thinly veiled at best. Some of this to me reads like material to attract potential investors. And based on political issues alone, it is hard for me to embrace said vehicles.
"LJ909" (lj909)
06/23/2017 at 15:21, STARS: 0
Its cool what they are doing, but I think they are moving a bit fast with their expectations. Personally I think they should give Volvo a few more years to get their sales right. As it stands they haven’t really lit the sales world on fire selling just over 82 thousand cars last year, which was a record for them. Year to date so far is for 2017 is 26,802 a a 4.5% sales decrease over this same time last year. I would rather them take it slow, and build up Volvo, than jump right in with these expectations that aren’t met and them going under, especially with a brand coming from China.
"Amoore100" (amoore100)
06/23/2017 at 15:32, STARS: 1
As an American, enough of our money goes to China that I don’t care if a bit more does by way of Sweden. Volvo are doing amazing stuff, and I’m not about to stand in Geely’s way when there have been far sketchier Western ventures. Geely is managing to run their operation with respect and oversight which is something I’ve come to find is lacking in plenty of the Western world.
"fintail" (fintail)
06/23/2017 at 15:49, STARS: 1
Seeing as virtually every business there is in effect linked to the government (and success is impossible without deference), I don’t know if I can worship claims of respect. It rings a little hollow. I suppose respect can be seen in letting people who know what they were doing keep doing it. Volvo is still Volvo in terms of aesthetic or product ethos.
The best I can say is that Geely bought IP instead of stealing it, which is the usual route, whether it be in shortsighted joint ventures, or outright theft. And at least some of the money comes back to North America, via corrupt officials who purchase residency and then launder the money in certain real estate markets. Or maybe the best in that I doubt these firms are truly making a profit (at least yet), so there might not be much headed to the black money types.
I wouldn’t buy a Russian car in 1953 or a German car in 1939, either. I can look beyond the management of the firms, to where the profits really end up.
Of course, you haven’t bought a new Geely Volvo, I haven’t crossed one off my list, so it is pretty much moot :)
"Amoore100" (amoore100)
06/23/2017 at 16:44, STARS: 1
I guess what I meant by that is that Geely is respecting the brand and its heritage by leaving it to its own devices, essentially, unlike the rape of MG, the massacre of Saab, the devolution of Rover, the floundering of Lancia, so on and so forth. That deserves kudos in my eyes considering they could have easily pillaged the marque and turned it around to sell their own Chinese garbage through a recognizable brand, or given it little money in order to push their own products through (ahem, GM, FCA, etc.)
Essentially I could purchase a new Volvo with the knowledge that I am buying a Swedish car, just as I could get a new Land Rover and consider it British, not Indian. I don’t want politics to influence my buying decisions short of the product itself because there will always be grudges and reluctances and there’s no reason to buy a car I don’t like just because the money won’t go to a country I don’t like. As a descendent of Chinese nationalists, I have all the more reason to hate Communist China, but that will not stand in the way of purchasing the car of my dreams because I think it childish to take a stance which will make little difference. I am more concerned with our big orange ape than to care where my car-purchasing money goes, though, so YMMV.
"fintail" (fintail)
06/23/2017 at 17:40, STARS: 1
Geely is likely thinking of the long game, an idea unknown to most executives, especially in the old Big 3. As you have read, I also doubt the profitability of the brand - I suspect it will take at least a decade of products as good or better than the current lineup to make it a viable concern not dependent on a new suitor for cash. Firms like Lancia (which exists in name only) and Saab - not to mention MG or Rover, I believe would have vanished either way - they occupied much smaller niches than Volvo, and would have been money pits. At least they had a few blips of hope even in the dark ages.
I know more than one person of Indian descent who is now a Jag fan due to recent ownership - and they or their family has backed it up with a purchase. That’s another one that I can’t believe is making a profit, but cheers to them for keeping the brand relatively in line with its heritage. I think more than one Volvo customer in my area has similar sympathies.
I don’t see anything particularly childish about voting with one’s wallet. The aim isn’t to drive someone out of business, but to support a profit destination with which one is comfortable. It’s not about not liking a country - I distinguish governments from people, but not liking a regime that makes Trumputinbannon look like an angel. I suppose the best way I could justify it would be to think that there are no profits, so it isn’t airing anything. i think the XC90 is an excellent looking machine in the right trim. Regarding big orange, I remain hopeful that it is just a blip, not the beginning of a 70 year era of oppression.
"Amoore100" (amoore100)
06/23/2017 at 18:51, STARS: 1
I think it finally comes down to whether or not you value the product or you value the statement more. Really it’s personal preference, but I’m a product oriented kind of person. I see a good product, I buy it regardless of who’s making the money. I suppose it’s quite a selfish means of purchase, but I suppose that if it’s my money I should be getting exactly what I want.
"fintail" (fintail)
06/23/2017 at 21:31, STARS: 1
Or maybe I am too cynical :) I always think of who owns what and where the money goes. I suppose if Volvo isn’t turning a legit profit, which I sincerely doubt it is, there’s no real harm done.
I love prewar MBs, but if I was living in 1939, I wouldn’t buy a new one. Even if the company itself isn’t leading the evil, the money might be diverted to something unpleasant.
"Amoore100" (amoore100)
06/23/2017 at 22:03, STARS: 1
I mean, if you’re cynical then I’m a hypocrite because we only buy used Volvos
"fintail" (fintail)
06/23/2017 at 23:08, STARS: 1
That’s the way to do it, better value and when you buy used, the new car money is done :)