Volvo In Search of Partner for Small Car Development

#Volvo, #V40

Volvo has been busy for the past year or so doing much soul-searching, and has since announced it's headed in a new direction. The Swedish automaker is focusing on the smaller scale of things, but it's also looking for a partner to share costs and development with. “We are open for partners,” Volvo’s chief executive Stefan Jacoby confirmed to the Financial Times. “We are open for collaboration in a win-win situation for sharing platforms, for sharing engines and for a general higher scale of economics.” Since taking the lead, Volvo's new boss, former Volkswagen man Stefan Jacoby, has set a focal point on streamlining the company using a Scalable Platform Architecture (SPA). The architecture allows almost any Volvo car to be built on the same core set of chassis components, and can apparently be scaled to suit everything from the smallest, simplest cars, to the largest and most complex. The Swede's potential partner will also be able to benefit from the new Volvo Environmental Architecture of four-cylinder engines, which will be available in either diesel-fueled or direct-injected gasoline variants. The VEA can be used to produce a variety of engines, ranging from higher-powered engines for sportier cars, to fuel-sippers for city cars. But small cars seem to the top priority so far, considering the V40 was pushed up the product cycle ahead of a much-needed replacement for the XC90. As for the match-making, Jacoby told the Financial Times it had some potential partners in mind, but remained tight-lipped when it came to names. Source: Financial Times

Geely should sell Volvo Cars to Renault. In the same way Dacia has become a credible competitor for Škoda, Volvo would become credible competitor for Audi under Renault. They would reach the 800.000 mark earlier than 2020, and most importantly make money in the process. Volvo would become profitable with the platform and engines sharing with Renault cars and Nissan crossovers, and it could be produced by the Renault-Nissan factories in Volvo key markets like North America, China and Russia. Renault wouldn't have to build their luxury brand. Unlike Peugeot or Citroën, Renault lacks tradition in that segment. While the Alpine brand is definitely a good idea, Initiale Paris is an absurd.

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