Volvo, the Swedish automaker owned by a Chinese manufacturer, wants to build vehicles in the U.S., Bloomberg News reports, and Italy’s Fiat, which owns Chrysler, is one possibility.
Obviously, it will be late to the party. Most other automakers have come to realize that building vehicles in the U.S. is the only way to protect themselves from changes in exchange rates that can make importing vehicles really expensive. That’s what’s happening right now with Japanese imports. Volvo’s answer isn’t to build its own plant from the ground up, but rather find a U.S. partner that could build vehicles for them.
“In the medium term, five to six years, we need to find a proper solution in North America,” Volvo CEO Stefan Jacoby told Bloomberg. “Building a plant ourselves is maybe more unlikely. I’m looking for a partner that could help us utilize a North American plant.”
As for Fiat, which already builds minivans for Volkswagen, he says, “Fiat is obviously one of the alternatives.” Jacoby said.
Volvo is owned by China’s Geely, which bought it from Ford when it was disposing of its foreign luxury brands.