Resurgence of Volvo and MG

Volvo and MG are brands that have been around for more than 60 years with both brands now being owned by Chinese investors. The fortune for these 2 brands really turned around since the take over and having access to the world's largest car market helped tremendously.

Volvo has gone from strength to strength since the take over and the new models introduced in the last year has impressed the automotive industry worldwide. It is no longer dubbed as the boring Swedish log as the new models offer a lot of new innovative technology but yet it did not stray away from its focus on being the safest car in the world. Being safe does not necessarily mean it has to be boring and Volvo focused on shaking the boring image. The XC90, S90 and the upcoming XC60 all have plug-in hybrid technology, new impressive looking minimalist interiors and display a sense of solidity to its build quality. Volvo has definitely carved itself a unique position in the market which allows it to straddle in between BMWs and Volkswagens. It doesn't come at the high price of a BMW but it is not as cheap as the Volkswagen.

MG has also changed in the recent year since the take over and like Volvo having access to the China market made a big difference. Of course having a production base in China does help. The soon to be launched MG6 looks very impressive and would definitely help it boost the brand position in China. MG contracted out of the market before it was taken over by the Chinese but the resurgence in the brand has always been a possibility. Having much more available fund for development and design allowed MG to shine once again. Selling cars in China alone will allow it to survive but being an old brand it would only make sense for MG to once again sell in UK, Europe and Asia. MG now needs to develop more models such as SUV and large sedans to cater for a wider market.

Volvo and MG names were at risk of disappearing at one point in time. Good thing that these brands ended up in the hands of companies that would turn it around and utilise the name as well as the facility to build good cars. It would be a shame to lose such established names. The automotive industry is highly competitive and survival of the fittest the name of the game. Having just money with no plans and no vision will lead the company to nowhere.