— This is the script of CNBC's news report for China's CCTV on January 13, Tuesday.
Gone is the Volvo of Sweden.
Say hello to the Volvo of the future, tapping into China for automobile production for models that will be sold in China.
CNBC's Phil Lebeau spoke with CEO Hakan Samuelsson about this change in strategy.
Q1) Lebeau: Here at the North American Auto Show, Volvo making some news with the introduction of a model that is going to be sold here in the United states, but it's built in China, I'm going to bring in Hakan Samuelsson with Volvo. Hakkan tell me a little bit, you said here earlier that the story is not just that you built it in China but it will be sold here in the US. This is really truly seeing the globalisation of Volvo come to fruition right?
A1) Hakan: I think you have to start with that we need a car that is attractive to the US customers because we want to grow in this very important market and thst this car has more legroom, it's more exclusive and we have it already in production in China. So we can bring it into US and get a better growth in this market. That's how you should see it. Volvos are not made in China it is usually made in Belgium of Luxembourg but I think that is something our customers dont have to care about they will deliver exactly the quality that customers expect.
Q2) Lebeau: When Geely first bought Volvo, there was a lot of concern whether they were going to know how to handle Volvo are they going to affect the reputation, but from here the perspective has been complete opposite. They've been great corporate parents.
A2) Hakan: Yes I think we have a very positive development with them now. we are more independent which i think is rather good. we take responsibility for our structure and profitability. I think they also helped us enter into China much faster than we could have and I think they also gave us possibilities to be more competitive in a smaller range of vehicles developing right now. we do better together with them, So they have bright in a lot of positive momentum into the company.
Q3) Lebeau: When you look at China, how is expansion there going on now?
A3) Hakan: Very rapid, Last year we grew 35%. We sold 80.000 cars. It's now bigger than the US for the first time, it's umber one market. This year we will see it grow also coming into the US. and these models will also help us see that.
Q4) Lebeau: And in here in the US thats been a concern with Volvo customers and fans where you had a fairly steady presence for a number of years, then after the ford sale of Volvo, there seemed to be a bit of a drift there, do you feel as though you stabilise it and now it's growing again in the US?
A4) Hakan: We have had a challenging year in the US and the narrowing product program so It hink we are seeing it leveling out and now we are confident that in 2015 we will see growth return, Basically because we will have a lot of new interesting products as we are showing here. We have 4 new products for the US consumer. And it's also a good sign to our dealers and customers that we are really committed to grow in this market because Volvo would not be Volvo if not for strong presence in the US market.
Q5) Lebeau: Despite the slow down on the last couple of years Volvo still has quite the reputation here in the US. Hakan Samuelsson Nice talking with us today here at the North American International Auto Show. Guys back to you.
PKG: U.S. National Retail Show Preview
US retailers were also in focus overnight, with a few upgrades and downgrades.
We'll find out how the US retail sector fared over the holiday period this week when we get final sales figures.
Globally, regulation and government taxation can affect slow consumption.
CNBC's Courtney Reagan reports.
[PHILLIPE HOUZE, EXECUTIVE CHAIRMAN GALERIES LAFAYETTE GROUP] "Growth product from France is increasing very slowly now and that's a problem for us. Because of the gov't policy about taxation, We are an upper-middle level of customers, they have the maximum taxation, they fear about the future so they prefer to save instead of spending".
HOUZE SAYS ASIAN TOURISTS BEGAN TO SPEND A BIT DIFFERENTLY TOO.
[PHILLIPE HOUZE, EXECUTIVE CHAIRMAN GALERIES LAFAYETTE GROUP] "Now there's been a change in policy with the new president in China. It's acting against corruption, the level of Chinese customers is still increasing but spending per Chinese customer is decreasing"
WALL STREET WON'T HAVE TO WONDER MUCH LONGER ABOUT THE HOLIDAY SEASON HERE IN THE U.S., THE NATIONAL RETAIL FEDERATION WILL HAVE ITS FINAL SALES RESULTS ON WEDNESDAY MORNING