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FTA: Now Volvo has found a different way around the tariffs for the EX30, through the U.S. duty drawback program, which dates to 1789. The program original

FTA: Now Volvo has found a different way around the tariffs for the EX30, through the U.S. duty drawback program, which dates to 1789. The program originally refunded companies the tariffs they paid on imported raw materials if they used them to build finished products for export. Today, it allows a much broader array of exports to offset taxes on similar imports. For Volvo, it means exports of its larger EX90 electric sport-utility vehicles built in South Carolina can be used to offset imports of the EX30 from China. If this works out for Volvo, this has to be one of the smartest business moves in the auto industry in recent years by Geely. If I recall, it wasn't clear at all that Geely knew what it was doing when it acquired Volvo; lots of industry doubters that a Chinese company could effectively manage a Western auto manufacturer. But from what I can tell, it has done pretty well with Volvo with a mostly hands off approach and now has a mechanism by which they can import Chinese made vehicles into the US.

radpanda 3y ago
No question that Volvo Cars is making more money now than under prior ownership. I think there's still some question if Geely has a brilliant overall plan or is just trying lots of stuff to see what works. There's Polestar, which is headquartered essentially next to Volvo Cars HQ and sells fairly similar vehicles. Although, Volvo Cars recently announced they were going to stop funding (and actually sell a ton of shares in) Polestar: https://www.reuters.com/business/autos-transportation/volvo-cars-proposes-distribute-627-polestar-stake-shareholders-2024-02-23/ https://www.reuters.com/business/autos-transportation/volvo-... Geely owns Lotus now and plans to make EVs that are completely different from previous Lotus cars, but investors don't seem confident about that play: https://www.carscoops.com/2024/03/lotus-shares-tumble-40-since-ipo-as-parent-geely-plans-world-domination/ https://www.carscoops.com/2024/03/lotus-shares-tumble-40-sin... Then there's Zeekr and Lync & Co: https://electrek.co/2024/04/19/zeekr-unveils-deluxe-mpv-marble-curtain-glass-called-the-009-grand/ https://electrek.co/2024/04/19/zeekr-unveils-deluxe-mpv-marb... https://www.autoevolution.com/news/lynk-co-07-emp-sedan-is-a-volvo-in-disguise-will-get-585-horsepower-227767.html https://www.autoevolution.com/news/lynk-co-07-emp-sedan-is-a... Oh and there's Proton too, also owned by Geely: https://technode.global/2024/02/22/malaysias-national-car-proton-hints-about-launching-new-energy-vehicles-soon-report/ https://technode.global/2024/02/22/malaysias-national-car-pr... And that's not even all of Geely's brands ... so the big question is does Geely have a coherent plan with all this? Or will these various brands eventually need to be consolidated? Maybe Volvo Cars absorbs all of the surviving Geely brands one day?
- CharlieDigital 3y ago
  I don't see their sprawl as an issue. Zeekr/Lync & Co. -- so far -- are not shipping to Western markets. Proton also has relatively limited distribution outside of S/E Asia.
  - radpanda 3y ago
    Zeekr and Lynk & Co are both available in some European markets. https://www.zeekr.eu/test-drive?c=001 https://www.zeekr.eu/test-drive?c=001 https://www.lynkco.com/en/market-selector https://www.lynkco.com/en/market-selector
  - piva00 3y ago
    I've seen quite a few Lynk & Co on the streets of Stockholm, and Zeekr has a flagship store at Kugsträdsgården right across the Royal Palace and some 10 min walk from Centralstation.
    - radpanda 3y ago
      Wow, you can take a 10-minute walk around the block in Stockholm and see the Zeekr, Lynk & Co, Polestar and Volvo stores: https://www.google.com/maps/dir/Zeekr+Center+Stockholm,+Hamngatan,+Stockholm,+Sweden/Polestar+Stockholm,+Norrlandsgatan+5,+111+47+Stockholm,+Sweden/Lynk+%26+Co+%7C+Stockholm+club,+Norrlandsgatan,+Stockholm,+Sweden/Volvo+Studio+Stockholm,+Jussi+Björlings+allé,+Stockholm,+Sweden/@59.3330657,18.0683359,18z/data=!3m1!4b1!4m26!4m25!1m5!1m1!1s0x465f9ded7d3ea4ad:0xc3bc45b78235946e!2m2!1d18.0676558!2d59.3324696!1m5!1m1!1s0x465f9de8dbb868c1:0x5ea25260735fa2!2m2!1d18.07115!2d59.333457!1m5!1m1!1s0x465f9dae6c55cedd:0x9ce832f9413786ad!2m2!1d18.0715411!2d59.3338898!1m5!1m1!1s0x465f9d5ea91a47eb:0xccbf37e6cf836326!2m2!1d18.0699786!2d59.3319262!3e0?entry=ttu https://www.google.com/maps/dir/Zeekr+Center+Stockholm,+Hamn...
- jauntywundrkind 3y ago
  I really like the idea of businesses that try in parallel. Instead of creating a team to do something, create 3 teams or 5 teams. Then see how different efforts compare against each other. As long as your teams are performing reasonably/not-dysfunctional, it feels like you can keep teams separate but try to share some lessons.

radpanda 3y ago

No question that Volvo Cars is making more money now than under prior ownership. I think there's still some question if Geely has a brilliant overall plan or is just trying lots of stuff to see what works. There's Polestar, which is headquartered essentially next to Volvo Cars HQ and sells fairly similar vehicles. Although, Volvo Cars recently announced they were going to stop funding (and actually sell a ton of shares in) Polestar: https://www.reuters.com/business/autos-transportation/volvo-cars-proposes-distribute-627-polestar-stake-shareholders-2024-02-23/ https://www.reuters.com/business/autos-transportation/volvo-... Geely owns Lotus now and plans to make EVs that are completely different from previous Lotus cars, but investors don't seem confident about that play: https://www.carscoops.com/2024/03/lotus-shares-tumble-40-since-ipo-as-parent-geely-plans-world-domination/ https://www.carscoops.com/2024/03/lotus-shares-tumble-40-sin... Then there's Zeekr and Lync & Co: https://electrek.co/2024/04/19/zeekr-unveils-deluxe-mpv-marble-curtain-glass-called-the-009-grand/ https://electrek.co/2024/04/19/zeekr-unveils-deluxe-mpv-marb... https://www.autoevolution.com/news/lynk-co-07-emp-sedan-is-a-volvo-in-disguise-will-get-585-horsepower-227767.html https://www.autoevolution.com/news/lynk-co-07-emp-sedan-is-a... Oh and there's Proton too, also owned by Geely: https://technode.global/2024/02/22/malaysias-national-car-proton-hints-about-launching-new-energy-vehicles-soon-report/ https://technode.global/2024/02/22/malaysias-national-car-pr... And that's not even all of Geely's brands ... so the big question is does Geely have a coherent plan with all this? Or will these various brands eventually need to be consolidated? Maybe Volvo Cars absorbs all of the surviving Geely brands one day?

CharlieDigital 3y ago
I don't see their sprawl as an issue. Zeekr/Lync & Co. -- so far -- are not shipping to Western markets. Proton also has relatively limited distribution outside of S/E Asia.
- radpanda 3y ago
  Zeekr and Lynk & Co are both available in some European markets. https://www.zeekr.eu/test-drive?c=001 https://www.zeekr.eu/test-drive?c=001 https://www.lynkco.com/en/market-selector https://www.lynkco.com/en/market-selector
- piva00 3y ago
  I've seen quite a few Lynk & Co on the streets of Stockholm, and Zeekr has a flagship store at Kugsträdsgården right across the Royal Palace and some 10 min walk from Centralstation.
  - radpanda 3y ago
    Wow, you can take a 10-minute walk around the block in Stockholm and see the Zeekr, Lynk & Co, Polestar and Volvo stores: https://www.google.com/maps/dir/Zeekr+Center+Stockholm,+Hamngatan,+Stockholm,+Sweden/Polestar+Stockholm,+Norrlandsgatan+5,+111+47+Stockholm,+Sweden/Lynk+%26+Co+%7C+Stockholm+club,+Norrlandsgatan,+Stockholm,+Sweden/Volvo+Studio+Stockholm,+Jussi+Björlings+allé,+Stockholm,+Sweden/@59.3330657,18.0683359,18z/data=!3m1!4b1!4m26!4m25!1m5!1m1!1s0x465f9ded7d3ea4ad:0xc3bc45b78235946e!2m2!1d18.0676558!2d59.3324696!1m5!1m1!1s0x465f9de8dbb868c1:0x5ea25260735fa2!2m2!1d18.07115!2d59.333457!1m5!1m1!1s0x465f9dae6c55cedd:0x9ce832f9413786ad!2m2!1d18.0715411!2d59.3338898!1m5!1m1!1s0x465f9d5ea91a47eb:0xccbf37e6cf836326!2m2!1d18.0699786!2d59.3319262!3e0?entry=ttu https://www.google.com/maps/dir/Zeekr+Center+Stockholm,+Hamn...
jauntywundrkind 3y ago
I really like the idea of businesses that try in parallel. Instead of creating a team to do something, create 3 teams or 5 teams. Then see how different efforts compare against each other. As long as your teams are performing reasonably/not-dysfunctional, it feels like you can keep teams separate but try to share some lessons.