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World

Volvo rolls out factory expansion in China

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World

Volvo rolls out factory expansion in China

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COMING UP:Volvo rolls out factory expansion in China

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00:00:00
>> A Swedish icon shifting into high gear in China, Volvo announcing it will build some top of the line cars there getting cozier with it's parent's low end car maker Geely. They saved Volvo from the junkyard six years ago. Back then industry insiders saw Geely turning Volvo around as a long shot.
00:00:20
Today, the tie up is shipping in to a success. But as Reuters reports there's still tension behind closed doors.>> What I'm hearing is that there is some tension as to how far premium Volvo can be and Volvo should go. Geely clearly wants Volvo to become a true premium brand in China and globally.
00:00:46
And I think Volvo is a little bit uncomfortable with it, because that's not who they are. They focus on safety, they focus on being clean, and being Swedish so there is some disconnect. I think the Geely is understanding and the Volvo is understanding of premium is slightly different.
00:01:06
>> Sales of both brands have risen over the past year, the two are even developing cars together. But Volvo is cautious about getting too close Geely wants basically, by associating itself with Volvo, deepening ties, sharing technology, basic technology that is, they wanted to elevate the brand, their own brand.
00:01:27
>> It's a tricky business because two companies sharing the same technology can be differentiate each other enough, so that consumers don't see Geely and Volvo as the same brand and that would be a problem.>> Volvo announced Monday it will make a stretched version of the S90 Sedan in China, a style catered towards the country's high end drivers.
00:01:52
A Volvo spokesman tells riders that would give them a leg up in the luxury sector. Giving Geely a contender and it's ambition to compete with BMW, Audi and Mercedes in China.