Dual Technology Strategy Adopted by Volvo Cars CEO as the New Trade Norm for Both China and the Western Markets
Going Two Ways: Volvo's Tech Duel for China and the West
-Yeah, you heard it right, pal!
In the ever-shifting landscape of tech and trade, Volvo Cars is stepping up its game, crafting unique engineering marvels for the Chinese and Western markets. Trade tensions have fragmented the sector, and CEO Håkan Samuelsson spilled the beans at the EVS38 symposium in Gothenburg, Sweden.
"We're aiming high, man. We're cooking up two badass versions of software and silicon components—the computer in the car," he said. "We're talking Western version and a Chinese one. Adapt or die, right?"
Volvo Cars has been based in Gothenburg since its inception in 1927, despite being majority-owned by China's Geely Holding Group since 2010. If they didn't tailor their products to diverse markets, the company could risk complicating exports to the U.S., especially with Washington eyeing a distance from Chinese tech[1].
Remember that rule the Biden administration finalized in January? The one that bans smart cars from China and Russia over data leak fears? Well, Samuelsson ain't freaking out. "Nah, we don't see any risk of using Chinese tech in the US. No way, Jose!"[1]
On the Global Stage
Volvo Cars' first-quarter earnings report revealed a drop in profits, partly attributed to the unpredictable worldwide economy[3]. New US tariffs of 25% on foreign cars and parts are causing a headache for the company, dampening consumer enthusiasm and jacking up import costs. In response, the firm has unveiled a profitability action plan, focusing on the US and Chinese markets[3].
Samuelsson wants to shake things up with the Chinese market, customizing it to regional preferences[3]. "We gotta listen to the locals, man. Adapt to the culture, the vibe, and maybe even whip up some sweet rides just for the Mainland!"[3]
The New XC70, an extended-range plug-in hybrid set for Chinese customers, is one such example—a move aimed at poaching market share from competitors like BYD[3]. In China, Volvo Cars' sales took a 12% dip year-on-year during the first quarter, with electric vehicles and plug-in hybrids accounting for 10% of the total. In the U.S., sales grew by 8%, with electric vehicles and plug-in hybrids making up 28% of that total[3].
Europe's Ride or Die
Although Volvo Cars is eager to focus on the US and Chinese markets, it still relies heavily on the European market. The region accounted for approximately half of the company's total sales for 2024 and the same proportion of sales in Q1 2025[4].
Despite this dependence on the European market, the company is exposed to EU duties due to certain vehicles being manufactured in China and imported into Europe[4]. Samuelsson isn't too psyched about trade barriers. "Tariffs ain't gonna foster long-term competitiveness in the European industry. I mean, seriously, bro! We need free trade and fair competition. But, heh, that's just a pipe dream, ain't it?"[4]
The European Commission recently suggested that Chinese carmakers operating in the EU may be required to form joint ventures with European companies or license certain technologies[4]. When asked about the potential impact on Volvo Cars given its ties with Geely, Samuelsson was confident. "Nah, I don't expect any problems with the Chinese tech in our cars, man. The software products in the car are largely adapted and developed by Volvo."[4]
Live, Learn, and Adapt
As global tensions rise, the auto industry must adapt, innovate, and overcome. In the words of the great Samuelsson, "We're looking at a more regional world, y'all. Adapt or die."
Sources: 1. CNN 2. Reuters 3. Capital 4. Financial Times
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Tags: Volvo, US-China tensions, Semiconductor, United States, Cars, tariffs
- Volvo Cars, in its bid to thrive in the tech-driven and commerce-shaped landscape, is creating two distinct versions of software and silicon components, which include the computer in the vehicle, catering to both the Western and Chinese markets.
- With the Baker administration enforcing a rule that bans smart cars from China and Russia due to data leak concerns, Volvo Cars' CEO, Håkan Samuelsson, is unperturbed about potential risks associated with using Chinese technology in the US market.
