Volvo has a power and a reputation known all over the world.
Their vehicles are well-known as the sturdiest in the world since 50 years.
The tests they realize in order to control the security of their production are so specific and so demanding that they make it a benchmark in the truck industry. Volvo becomes the legal norm of security tests in Sweden.
In former times, all the cabs were made of wood. Volvo Trucks have always been focused on security and in 1948; the company was the first truck constructor to launch a mass production of steel cabs.
Leader in security, Volvo is also really competitive in the world market. That can be explained with the tax system in Sweden who is one of the lower in industrial countries. With 8 million citizens, the country depends on the exportation what explain that companies have a helpful taxation to be competitive.
It is also on the second world rank for heavy transport but, because of the economic crisis, it moved on 5 trimesters of losses.
In 2009, the brand had an annual sales of 72 700 000$. It seems to be huge but, the annual sales and the profitability are going down more and more over the years. Its last payoff was not more than 3.25% and get bogged down in debts with 23 028 000$.
To talk about Volvo Sweden, which sales less and less
Volvo Sweden sales less cars every years. Its brand recognition in term of reliability is besmirched. Indeed, the Swedish constructor calls back 26 000 cars all over the world to change an electronic program.
For those facts of trade gap and technical issues, Volvo has been sold at auction in the end of 2008. The brand was bought for 1 milliard 300 million $. With that deal, Ford succeeds to split open with Volvo which, since 5 years, didn’t make profits.
For the Chinese Geely, the new owner, this buyout allowed him to reach the High technology of Volvo, and in the same time, is the testimony of the great grew up of the Chinese automobile industry.
In 2009, China becomes the