Currently reading: Volvo seeks partner for small cars
Volvo is looking for a partner to share development of its future small car range
Autocar
News
1 min read
23 January 2012

Volvo is looking for a partner to share development of its future small car range, according to a report by the Financial Times.

The car maker, which has been owned by Geely since 2010, when the Chinese company purchased it from Ford, is keen to forge a new relationship to help divide the costs of producing new cars.

“We are open for partners,” Volvo’s chief executive Stefan Jacoby confirmed to the FT. “We are open for collaboration in a win-win situation for sharing platforms, for sharing engines and for a general higher scale of economics.”

Jacoby said Volvo had some potential partners in mind, but hadn’t entered into any detailed discussions yet.

Volvo’s boss has taken action to streamline the company since he joined from Volkswagen in August 2010, encouraging the development of a modular range of engines and a model platform that can underpin anything from a hatchback to a large saloon.

He also made a new small car a priority and Volvo will launch its new V40 at the Geneva motor show in March. The car has been pushed up the product cycle ahead of a replacement for the ageing XC90 full-size SUV.

The five-door hatchback will give Volvo a much-needed rival to the BMW 1-series and Audi A3.

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sirwiggum 24 January 2012

Re: Volvo seeks partner for small cars

Agree with the earlier post re: Fiat. Fiat are looking a partner, they can build half decent small cars and engines (Panda / 500).

ronmcdonald 24 January 2012

Re: Volvo seeks partner for small cars

WooDz wrote:
ronmcdonald wrote:
Saab is bankrupt.
It doesn't mean Volvo would start building Saabs again. My comment was purely based on a possible business case of getting something they require which is also on their doorstep.

Who mentioned Volvo building Saabs?

The text says Volvo want to reduce costs. Buying Saab means increasing costs - they're not going to get it for nothing. And please remember Muller in his wisdom to keep the business on life support sold the family silver so even if you were to buy a production line, you'd then need a roof over it's head etc. Without massive government sweeteners like here in the UK, it's near impossible to understand why anyone would choose THL to build cars over cheaper production facilities elsewhere in the world.

In saying all that, exactly what would Saab bring to the table? Their experience of building small cars is? All they have is a sketch on the back of a cigarette packet. Saab are no further forward in this field than Volvo.

WooDz 24 January 2012

Re: Volvo seeks partner for small cars

ronmcdonald wrote:
Saab is bankrupt.
oh no sh!t sherlock.
Hence getting their hands on a modular platform which doesn't belong to anyone else for less than the cost of engineering one themselves would save them money. They could even hire the Trollhättan production facilities from Hemfosa to produce the units. Volvo would win again as they wouldn't have to fork out to add/replace another production line.

It doesn't mean Volvo would start building Saabs again. My comment was purely based on a possible business case of getting something they require which is also on their doorstep.

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