Volvos Made in China To Hit U.S. Markets Next Month; Will U.S. Consumers Be Receptive?

Volvos made in China will soon hit showrooms in the United States, according to parent company Geely Automobile.

Beginning in May, Volvos made in the Chinese province of Chengdu will be delivered for sale to the U.S., reports CNN. Approximately 1,500 S60 Volvo Inscription sedans made at the Chinese factory will be brought to various U.S. states this year, according to CEO Håkan Samuelsson.

Samuelson said the car deliveries could eventually increase to 5,000 a year.

This is a big market branding gamble for Volvo which could also pave the way for other car manufacturers in China to break into the U.S.

According to Bain & Company analyst Raymond Tsang, Volvo's reputation will be put on the line with this decision.

Chinese car manufacturers are currently having difficulties selling automobiles at home because of ownership restrictions, lack of residential parking and congested roads.

In 2014, the China Association of Automobile Manufacturers said in a report that car sales growth dropped to 7 percent, while a 3.9 percent growth was recorded in the first three months of 2015.

Moreover, the state government crackdown on citizen luxury purchases brought down car sales of models from Audi and Mercedez Benz, the top car choices in China.

Tags
China, Volvo, Automakers
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