China has been exporting cars all over the world but has not been able to get a chance to export its make in US cars showroom.
Volvo is looking at changing this aspect with its new vehicles which are currently being made in a factory in south-west china. The company is looking at exporting these vehicles to the United States, American showrooms, next month.
China is linked to cheap clothing and electronics, but they are making an effort so as to prove to the US and other countries that they can also make authentic luxurious items including cars. CEO Hakan Samuelson said that Volvo is planning on selling 1500 Chinese-made 560 inscription Sedans in 2015 in the U.S. market and 5000 annually in subsequent years.
China was the largest market for cars sales globally in 2009. Most of the car manufacturers export their models to countries in Africa, Middle East and Eastern Europe. No car manufacturer in China exports their cars to the US.
Analysts say that Volvo will have to tread carefully to maintain a good reputation, “They have a strong enough reputation no matter where they are made, they will have to make sure they don’t ruin that perception with any quality issues”, said Raymond Tsang, a Shanghai-based partners at consultants Bain and Company.
Companies like Hyundai and Toyota are extremely successful despite the fact that people viewed them as low-quality cars compared to the US cars. China is good especially in technology, but the few people who stain their name with fake products are slowing them down and putting them behind.