The Swedish brand would be a candidate to take advantage of the alliance between the French and the Chinese to manufacture cars in the country; production would be conditional on sales volume
Volvo can use an asset to produce cars in Brazil. Thanks to agreement between Renault and Geely in the countrythe Swedish brand, which belongs to the Chinese group, has the possibility of manufacturing passenger cars in the complex of the French car manufacturer in São José dos Pinhais (PR).
The report of Automotive Journal found that the same applies to other Geely companies, such as Lynk & Cie., Zeekr and Polestar. This arrangement is due to the agreement which guarantees the Chinese, for the moment, 26.4% of control of Renault’s local operations.
The Ayrton Senna complex, in Pinhais, was opened in 1998 and has an annual production capacity of 320,000 passenger cars. Enough to “embrace” the models of the Chinese group’s brands.
Thanks to an investment of 3.8 billion reaisannounced in November, Geely revealed it would make four cars in Brazil by 2027. The first of these will be the EX5built on the Smart Global New Energy Architecture (GEA).
“It all depends on the strategy and especially on the volume. We will bring hybrid cars next year, we will have Lynk & Co. and then we will see what to do. No other local assembly scenario would make sense if not production at the Renault factory”, underlined a source linked to the Geely group.
What companies are saying
Asked about the possibility of other Geely group companies using its São José dos Pinhais unit for production, Renault was succinct.
“Currently we are focusing only on the Geely Auto brand,” the French company said. On the other hand, he did not deny that other branches of the Chinese group could use the facilities of its complex in Paraná.
Volvo, in turn, stressed that it is not currently considering producing locally. The Swedish brand also emphasizes that it is unaware of the format of the agreement between Geely and Renault in Brazil. Discover the company’s complete positioning below:
“Volvo Car Brasil is in an excellent period, surpassing the mark of nine thousand cars sold for the first time in more than 20 years of activity in the Brazilian market.
Volvo Cars is part of the Geely Holding group. We know about the group’s official entry into the country, but we do not know about the agreement between Geely Holding Group and Renault do Brasil to produce cars nationally. For the moment, Volvo Car Brasil does not plan to start vehicle production on Brazilian territory. »
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