Geely Gets Ready to Enter U.S., European Markets With SUV
Volvo Cars Parent Wants Perception of High-Tech, Affordable, Not “Cheap”
For the better part of the decade, industry watchers and analysts have told us that the entry of Chinese automakers into developed markets was imminent and that the coming wave of low-priced cars would have a hugely disruptive effect on established manufacturers. The reality has been quite different so far. No major Chinese automotive brand has made significant inroads into the U.S. market, other than a few low-volume fleet sales to municipalities. Although, the Chinese entry into the U.S. market may begin in earnest soon with Volvo Cars parent company Geely reportedly preparing to launch the brand stateside, according to a Reuters report.
Unsurprisingly, the first vehicle likely to be bound for the Europe and U.S. markets is likely to be a compact crossover. Working collaboratively with Volvo, purchased by Geely in 2010, a jointly developed platform that will be shared between Volvo and Geely models will underpin the new model. Alternative-fuel models will reportedly be offered, including a plug-in hybrid.
Geely reportedly wants to position itself as a high-value, high-tech brand in the U.S. and Europe, rather than just a “cheap” alternative to mainstream brands. Although Korean brands Hyundai and Kia are now well-regarded by U.S. consumers for their stylish, feature-packed models, the brands’ humble beginnings in the U.S. were built mainly on sales of low-cost models that mainly competed with used cars.