L.A. Auto Show: Volvo’s U.S. expansion is a ‘new chapter’ in its history, CEO Stefan Jacoby says
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Kicking off the L.A. Auto Show on Wednesday, Volvo Chief Executive Stefan Jacoby said the company’s emphasis on electrification of its vehicles and increased expansion into China and the U.S. represents a ‘new chapter in Volvo’s history book.’
Jacoby, like many auto industry executives, said the future lies in electric cars. Last month, Jacoby revealed that the sporty Volvo C30 DRIVe Electric will begin production in 2011. The car runs about 90 miles on a single charge.
‘This car is powered solely by electricity, entirely without exhaust emission,’ Jacoby said, adding that Volvo will introduce a prototype of the car in California next week. It is currently on display at the auto show and will be part of the Green Car Ride and Drive event on Thursday.
Jacoby was the keynote speaker for the start of the auto show.
He said Volvo’s work on electrification includes a systematic approach to safety issues. ‘The battery-powered Volvo must be as safe as any Volvo car,’ he said, noting that recent crash tests have proved the cars’ worthiness in the global market.
Jacoby also said that Volvo will offer a plug-in hybrid, combining electric power with a diesel hybrid power train, beginning in 2012. The car will offer ultra-low CO2 emissions, below 50 grams CO2 per kilometer. Currently, the company is working on a new generation of gasoline and clean diesel engines.
In addition to green improvements, Jacoby addressed Volvo’s recent acquisition by Geely Holding Group. The Chinese company bought Volvo from Ford in August for $1.5 billion as part of Ford’s strategy to raise cash, pay off debt and focus on its Ford and Lincoln auto brands.
When asked how Volvo will deal with maintaining its core values and image with production moving to China, Jacoby said the company would be ‘stupid’ to abandon its core values in construction and manufacturing.
‘I think we will maintain these values, coupled with other values to make the brand more desirable. We will not give up our quality standards or our safety standards or our automotive technology.’
Despite the company’s energy-saving innovations, reports show Volvo’s sales have taken a dip. Through the first 10 months of this year, Volvo Cars of North America has sold 45,114 vehicles in the U.S., down 11.8% from the same period a year ago. That compares with a 10.6% sales gain for the entire auto industry, according to Auto Data Corp.
Jacoby said he expects Volvo to sell 380,000 cars globally this year.
During a question-and-answer session hosted by Motor Press Guild, the nation’s largest automotive press association, Jacoby was asked about Volvo’s plans to offer larger cars for the Chinese market. He declined to mention specifics, which he said will be available toward the end of the year.
He also said Wednesday was his first time at an auto show since joining the company.
Jacoby was chief executive of Volkswagen Group of America prior to joining Volvo last August. He has also served as president and chief executive of Mitsubishi Motors Europe.
-- Nate Jackson
