Does China Own Volvo Cars? (Debunking The Myth!)

There is a lot of speculation going around regarding the ownership of Volvo. Is it still a Swedish-origin brand? Does China own Volvo cars now? And so on.

First of all, Volvo cars are indeed owned by the China-based company Geely. However, it does not mean China owns Volvo cars. The ownership of Volvo group vehicles is not limited to one company but it’s a combination of multiple vehicle industry groups having their share in it. 

In this guide, I’ll give you more overview of the current owners of Volvo cars as well as Volvo trucks. Also, I have something to share about the stigma behind questionable quality because of the owner company’s nationality.

More About the Current Owner Of Volvo Cars

First of all, exactly who owns Volvo cars? Right now, the brand is under the umbrella of a Chinese company called Zhejiang Geely Holding Group. The group boasts a significant ownership of around 15 vehicle manufacturers making a great impact on the automobile industry.

To give you more idea about the company, it’s nestled in the southeast side of China within the Zhejiang province. In 2010, the company acquired Volvo to proceed towards an international presence.

Initially, Volvo cars were owned by AB Volvo. However, over the years, the ownership status has changed to grow and thrive in the automobile industry.

Volvo Ownership Timeline:

• In 1927, Volvo cars were founded by AB Volvo to manufacture construction-focused machines as well as trucks and buses.
• Later in 1999, the company decided to sell the automobile section to Ford Motor Company.
• After owning Volvo cars from 1999 to 2010, Ford Motor Company sold Volvo cars to the current China-based Group Geely for $1.8 billion. The headquarters was still in Sweden ( Torslanda, Gothenburg).

• Public ownership was allowed in 2021 while Geely was still the major shareholder at that time.

Where Exactly Are Volvo Cars Made?

Now the ownership explanation may also make you question, is Volvo made by China-located plants solely?

Well, Volvo cars are made by their production plants located in not only China but also Sweden, Belgium, Malaysia, India, and the United States.

Let’s say for example Volvo V70. By the way, I have covered V70’s stalling problems in this guide just recently. Anyways, V70 is known to be manufactured in Sweden’s Torslanda factory. The Belgium-based plant production also handles the manufacturing of V70.

So clearly, not all models are handled in China-based plants but also other production facilities of Volvo cars.

Here’s more on the production facilities of Volvo Cars:

1. Volvo Cars Cornerstone and the historic Torslanda facility are located in Sweden where models such as V60, XC90, V90, XC90, and other iconic models are produced. Other Sweden-based plants are located in Olofström and Floby. The former caters manufacturing of body components while the latter focuses on brake discs and engine components.
2. Another significant production site is within Ghent, Belgium which contributes towards the making of models such as S60, XC40, C40, and V60.
3. China-based production plants for Volvo cars are located in Daqing, Luqiao, Chengdu, and Zhangjiakou. These facilities cater to several popular Volvo car models along with engine production.
4. The Volvo S60 is manufactured in the U.S.A.-based plant located within South Carlina.
5. Other Asian market automobiles for Volvo cars are handled in production plants located in Malaysia as well as India.

Owner of Volvo Trucks

To understand who owns Volvo trucks, it’s important to acknowledge that it’s a separate entity within Volvo and different from Volvo cars.

AB Volvo being the majority shareholder is primarily the owner of Volvo trucks. The company is also referred to as Investor AB. 

Thanks to Geely taking the lead for the car lineup, there was scope to make significant investments in the truck division.

The Stigma Of China Owning Volvo

Soon after Geely acquired Volvo cars, there’s been a lot of mixed feelings within the community that loved Volvo vehicles. Specifically, regarding the workmanship and quality.

However, despite the apprehensive reactions, Geely’s acquisition has actually breathed new life into the vehicle. In fact, some consider Volvo to be on par with its German rival. Not only the designs were sleek but also there was advanced technology involved. 

For example, many have appreciated the 180 km/h speed cap for increased safety which is by the way quite bold of a move.

About the doubts on the overall quality due to Volvo owner country, the perception is actually sort of lagging behind reality. It’s nothing but a notion that Chinese company-owned vehicles are equal to low quality. And this belief is drastically getting outdated within the vehicle community.

In this matter, I’m on the same side with thoughts shared by AutoDeal . They say that the quality of Chinese cars is not just great but also remarkably competitive, standing in the same row with brands from Europe, America, and Japan.

Final Thoughts

What I want to say is that you should not pay attention to weird myths when making a decision as important as vehicle ownership. 

Volvo is not owned by China but by a company that is based in that country. However, the plant productions are not limited to China. So, the actual manufacturing and technology is not just based on its Chinese ownership. 

As well as the fact that just because there’s the word China involved, it does not necessarily downgrade the potential.

That’s All For Today! I will see you in another guide soon enough.