Volvo Looking for North American Partners to Build Cars

VolvoVolvoSweden, 1927 > present49 models
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has got a problem. It is popular in North America, especially the US and Canada, but it has to ship all of its cars there. Volvo is not a boutique sports car maker that can get away with charging slightly higher prices to make up for the difference in shipping and currency conversion. In North America, its cars compete with BMWBMWGermany, 1918 > present87 models
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, MercedesMercedes-BenzGermany, 1924 > present197 models
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, VWVolkswagenGermany, 1938 > present98 models
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, AcuraAcuraJapan, 1986 > present24 models
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and more. Its models straddle the area between normal volume cars and more niche luxury cars. Unlike those companies, Volvo does not have a factory in North America, but it is trying to change that. Volvo says that it is looking for North American partners who already have factories in the region to partner with and build their cars. 

"In the medium term, five to six years, we need to find a proper solution in North America. Building a plant ourselves is maybe more unlikely. I'm looking for a partner that could help us utilize a North American plant," said Volvo CEO Stefan Jacoby.

From the way Volvo is talking, it is not too picky about who its partner is either. According to Jacoby, Volvo is in takes with "a couple" of North American automakers for use of their factories. It is highly likely that Volvo would work with that automaker to develop cars from shared platforms at some point as well. 

Volvo wants to be able to manufacturer in North America has a balance against the Euro. If the Euro continues to fall, Volvo would be able to North American-made cars in North America at a profit. If the Euro begins to rise again, it will not be so reliant on European production. At the moment Volvo is losing money in the US but is profitable in Europe.

"FiatFiatItaly, 1899 > present159 models
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is obviously one of the alternatives. If you speak to Marchionne, just tell him to call me," said Jacoby. 

The possibilities for a partner are pretty large. NissanNissanJapan, 1932 > present159 models
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seems like perhaps the best partner. It has several factories in the US and Mexico, and the company appears open to partnerships. ToyotaToyotaJapan, 1937 > present155 models
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or HondaHondaJapan, 1948 > present102 models
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are the other two dark horse candidates for a partnership. They both have the capacity but have been working on their own recoveries since the 2011 tsunami. FordFordUnited States of America, 1903 > present92 models
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seems unlikely since they sold Volvo just a few years ago. GMGMUnited States of America, 1998 > present8 models
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has its partnership with Peugeot, and it does not seem likely they would consider doing something with Volvo. Volkswagen, BMW and Mercedes are all reportedly running at capacity. 

Since its purchase by GeelyGeelyChina, 1986 > present5 models
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, Volvo has been attempting to grow global sales to 800,000 cars a year by 2020. It sold 449, 255 cars in 2011. It is working on a vehicle with Geely now and plans to open a factory in China in the second half of 2013.