Cars

Geely's Volvo brand popular at New York show

By Wu Chong (China Daily)
Updated: 2010-04-08 10:07

Volvo cars on display at the 2010 New York International Auto Show. Geely Automobile signed a deal with Ford last month to acquire Volvo for about $1.8 billion.? [China Daily]

NEW YORK - American car buyers are undeterred by Geely Automobile Holdings Ltd's purchase of Volvo, judging from their response at the New York International Auto Show.

Volvo's latest models - including the XC90, the XC70 and the C70 - have attracted large crowds and remain one of the most popular attractions at the show, which runs through April 11.

Most potential buyers voiced little concern over Geely's recently announced takeover of Volvo.

Ennius Bergsma was among those who signed up to receive more information from Volvo. The senior managing director of Brock Capital Group LLC said the Geely-Volvo deal would "absolutely not" affect his interest in Volvo.

"It's safety and Swedish steel that people are interested in," Bergsma explained.

Mark Overton, a New York area resident who's been considering a Volvo for many years, said he would "not necessarily" change his mind because of the deal.

But he added: "Volvo has been known for its quality. The Chinese will need to prove that they can keep that up."

Geely, China's largest private automaker, signed a deal with Ford last month to acquire Volvo for about $1.8 billion. The price is far less than the $6.45 billion Ford paid for the Swedish company in 1999.

In the deal, Geely and Ford also agreed on issues including intellectual property rights, research and development and supply chain.

"The change of ownership will not change Volvo's branding strategy," said James Hope, a spokesman for Volvo Cars of North America. "We will still be a company whose management, design, manufacturing, product planning and engineering will remain in Scandinavia."

According to Hope, Volvo sold 5,237 units in the United States in March, a decline of 17.6 percent from March 2009. However, its first-quarter sales still showed a 10.9 percent increase over the first three months of 2009.

Ahmed Younes, a sales and leasing consultant for Volvo at the show, said the brand's sales from the show have been "excellent".

The XC90 and the XC 70 models have been the most popular, he said.