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How the Chinese tycoon driving Volvo plans to tackle Tesla

HANGZHOU, China — "Do you know how big Volvo is?" asked Don Leclair, finance chief at Ford. It was 2008, and Leclair was responding to an offer from a little-known Chinese businessman to purchase the Swedish carmaker, which Ford owned. The businessman, Li Shufu, had a company with less than half Volvo's sales and a flagship model, King Kong, almost unknown outside China. He was politely shown the door of the "Glass House," Ford's iconic headquarters near Detroit, according to two people who were at the meeting. Ford's Leclair did not respond to requests for comment about the episode. Fast-forward to 2021 and Li Shufu's company, Zhejiang Geely Holding Group, is one of the biggest-selling automakers in the world's biggest auto market. It controls not only Volvo Cars but also a clutch of global auto brands, and a significant stake in German giant Daimler AG, the maker of Mercedes-Benz. These names are now part of its plans for a revolution in autos. Geely is preparing Volvo for a listing on the Nasdaq Stockholm exchange as a route towards the future of transportation: One where cars are part of an electrified network of mobility services, driving themselves, connecting to each other and — like cellphones — generating an array of data and new business opportunities. It's a vision more Silicon Valley than Detroit, where traditional automakers globally are chasing another giant — Tesla Inc. Li Shufu and his advisers eventually convinced Ford to part with Volvo in 2010 for $1.8 billion. It was the first in a string of deals, tapping brands such as Lotus, Smart and the London Electric Vehicle Company to form a network that he calls a "bigger circle of friends" across industry segments. Li Shufu sees them as building blocks to help Geely compete in a future where autos are not vehicles, but "service providers," he told Reuters in his management suite at Geely's headquarters in Hangzhou, eastern China. In that business model, cars will be available on subscription and offer services such as making payments and in-car apps. They will update their own software, and spawn opportunities in the same way as the mobile operating systems developed by Apple Inc and Google. "We are trying to create an automotive ecosystem similar to Android," he said. Li Shufu, 58, recently adopted a foreign first name - Eric - because he liked the sound of it.

Volvo C40 Luggage Test: How much cargo space?

The Volvo C40 is the chopped-roof "coupe" version of the Volvo XC40, albeit without the internal combustion powertrain options. It's Recharge or nothing. As an electric vehicle, the C40 (or EC40 as it's apparently being renamed) is quite agreeable, with ample range and performance, plus a refined driving experience indicative of a Volvo that is quite clearly more sophisticated than the Hyundais, Kias and Volkswagens of the world. The interior up front is highly functional, too, with clever storage and good tech. Oh, and the gray wool upholstery is just beautiful.  But good grief, is the rear visibility atrocious. The back window is comparable to a pillbox and the blind spot is enormous. Worse, the various cameras supposedly on board to counter those flaws are just not effective. The rearview camera is mounted so low that its field of view is poor. The rearview camera mirror is susceptible to water droplets and condensation, and worse, the mirror housing is effectively pointed at the ceiling. That ceiling is glass and there is no shade. Ergo, if the sun is behind you, the amount of glare on the mirror renders it unviewable. If the roof is covered in condensation and the sun is behind you, there might as well be a brick mounted to the ceiling.  OK, I've gone off the rails here, but I just had to get that off my chest. The XC40 Recharge (or EX40 as it'll be called in the future), didn't have that problem, and I'm sure this isn't exactly a spoiler, it has a more usable cargo area, too.  Just in case it's not obvious, the C40/EC40 and XC40/EX40 is on the right. I'm done doing that / business, so I'm just going to make this future-proof from here on out. Volvo's specs say the EC40 has 17.3 cubic-feet of cargo space and specifically indicates that includes the underfloor storage area. When seemingly using that same measurement, the EX40 has 20.4. Honestly, I have no idea how that equates to the typically reported cubic-foot volume number of other manufacturers, but as a point of reference to each other, I'm going with those figures.  Both have an underfloor storage area, including a lid that cleverly props itself up so you can divide the cargo area for the purposes of keeping smaller items in place. There's also two little tabs that stick up specifically intended to loop grocery bags onto.  Now, I wrote off this area in the XC40 luggage test since it wasn't big enough to hold the smallest (fancy) bag, shown above in blue.

Volvo aligning model range into three families

Things have been slow in Gothenburg the past few years, but they're picking up speed. The only new model Volvo has released in the past four years since it was taken over by Geely - that being the V40 introduced in 2012 - started its development when the company was still under Ford's umbrella. But now the Swedish automaker is preparing to launch a volley of new models, and the new XC90 is only the starting point.
Volvo has set out to align its product portfolio into three model families - 40, 60 and 90 - each with three body-styles: sedan, wagon and crossover. (Volvo presented a tidy little table, which we've replicated below, to outline what it has in store.) That means a new S40 sedan and XC40 crossover as well as a replacement for the current V40 wagon, all to be based on a new platform shared with Geely. It also means replacements for the current S60, V60 and XC60 to be based on the modular SPA platform that underpins the new XC90, as well as a new S90 sedan to replace the S80 and a new V90 wagon to succeed the V70 and move it up-market above the V60.
All of these models are set to arrive within the next four years as Volvo moves to replace its entire lineup by 2019 and subsequently move to more competitive seven-to-eight-year product life-cycles. But as aggressively as Volvo is pursuing this renewal of its core models, they're not the only things Gothenburg has in store. Keep reading below to learn how Volvo's model line will flesh out over the coming years.