Background Information
Volvo is an iconic Swedish car manufacturer that has been around for over 90 years. Founded in 1927, the Volvo Group is one of the world’s largest automotive and industrial companies and is renowned for its safety-conscious designs and strong engineering ethos. Volvo consistently ranks highly in consumer surveys around the world and is renowned for its reliability and performance. So, an obvious question arises, who owns Volvo?
Volvo Group
Volvo is owned by the Volvo Group, a Swedish global manufacturing company headquartered in Gothenburg, Sweden. The Volvo Group was created in 1975 when the steel and automotive divisions of the original Acuson-Vabi AB were split off into two companies. The Volvo Group is divided into two companies; AB Volvo, which manufactures trucks, buses, construction equipment, and engines, and Volvo Car Corporation, which focuses on producing passenger cars.
Volvo Cars Merger
In 1999, the Volvo Group and Ford Motor Company announced plans to merge Volvo Cars with Ford’s luxury car design and engineering. The merger was completed the following year, and Volvo Cars officially became part of the Ford Motor Company. The Volvo brand was still owned by the Volvo Group, although the company’s engineering and design was now managed by Ford.
China’s Geely Group
In 2010, the Volvo Group sold its car division to the Chinese automotive giant, Geely Group. Geely, one of the largest private Chinese carmakers, paid $1.8 billion for the Volvo Car Corporation and assumed control of the Volvo brand and its car production facilities.
Geely – Volvo Commitment to Quality
Since the takeover in 2010, Geely has focused on giving Volvo a much-needed competitive edge in the premium car market. The company has invested heavily in research and development and upgraded Volvo’s production capacity to keep up with demand. Geely also announced its commitment to Volvo’s existing safety, quality and environmental standards, ensuring that Volvo remains synonymous with safety and reliability.
Cleaner, More Efficient Cars
Geely has also pushed Volvo to develop cleaner, more efficient cars. Under Geely’s initiative, Volvo is now a leader in electric and hybrid vehicle technology, and has committed to phasing out combustion engines by 2030. In addition, Volvo is investing heavily in the development of autonomous vehicles, and the Swedish car giant is making steady progress towards its goal of having fully autonomous vehicles on the road by 2021.
Differentiation Strategies
Geely has also helped Volvo differentiate itself from other car manufacturers by focusing on digital innovation. Volvo’s CarPlay and Android interfaces, and its suite of mobile apps, have become immensely popular with younger drivers and tech-savvy consumers. By blending Swedish design and engineering with cutting-edge tech, Volvo is embracing the future of automotive technology.
The Volvo Experience
Geely’s ownership of Volvo has allowed the Swedish carmaker to remain true to its values and retain its reputation as a maker of premium cars. Volvo’s commitment to safety and performance remains at its core, while the company has embraced technology to differentiate itself from its competitors and provide an enhanced driving experience.
New Technologies in Volvo Cars
Due to Geely’s investment and commitment to the Volvo brand, Volvo has made major strides in integrating cutting-edge technologies into its vehicles. The newest generation of Volvo cars come equipped with the latest driver-assist technologies, from advanced lane-keeping systems to sophisticated blind-spot monitoring systems. Volvo has also forged partnerships with tech giants such as Google, enabling its vehicles to be equipped with powerful onboard computers and advanced digital interfaces.
Investment in Automotive Mobility Services
Volvo is also investing heavily in automotive mobility services, such as its car sharing platform and its connected car services. Geely has enabled Volvo to be at the forefront of the shift towards autonomous, electric, and shared-use vehicles, and to develop innovative ways to make its cars more convenient and accessible to customers.
Volvo’s Commitment to the Environment
Geely has also enabled Volvo to remain true to its commitment to the environment. Volvo’s commitment to sustainability dates back to its founding, and the company has embraced the development of electric vehicles and other clean energy solutions. Volvo is committed to reducing its environmental footprint and has set a goal of becoming a net carbon neutral company by 2040.
Increased Market Presence
Since Geely took control of Volvo, the Swedish carmaker has seen a major increase in its market presence. Volvo has made significant gains in the US and Chinese markets, and has seen its market share increase in many other regions. Geely’s commitment to investing in Volvo’s engineering and design has enabled the carmaker to compete with more established luxury brands and attract new consumers.
Vision for the Future
Geely’s ownership of Volvo has re-energized the Swedish carmaker and given it a clear vision for the future. Volvo is now firmly focused on its goal of becoming a leader in the electric vehicle market, and is exploring innovative solutions to address the environmental challenges of the automotive industry. With Geely pushing Volvo to be more ambitious and more creative, the Swedish carmaker is well positioned to remain at the forefront of the automotive industry for years to come.
