Low Tide
04-25-2003, 02:25 PM
http://www.autoweek.com
By MARK RECHTIN | Automotive News
NEW YORK - A bottleneck at the Volvo subassembly plant in Koping, Sweden, has slowed deliveries of the automaker's all-wheel-drive vehicles, including the red-hot XC90 SUV, to the North American market.
Volvo has a joint-venture plant with Getrag in Koping (say "Sherping") that assembles and integrates chassis components, manual gearboxes and awd systems for final assembly at Volvo's factories, said Hans-Olov Olsson, president of Volvo Car Corp.
"Overall demand for all-wheel drive is increasing," Olsson said in an interview here last week. "Right now, we are running three shifts, seven days a week at Koping for all-wheel-drive componentry. We are going to invest more in capacity and tooling."
As a result, Volvo Cars of North America Inc. is shifting its emphasis toward delivering front-drive models, primarily for the Southeast and Southwest markets, said Vic Doolan, Volvo Cars CEO. "Between the XC90, R models and other all-wheel-drive models, we have some real constraints, and we are really struggling," he said in a recent interview.
In America, Volvo has awd available in all vehicles but the S40 sedan and V40 wagon. Volvo did not have a breakout of the number or ratio of awd installations.
Volvo uses an awd system designed and built by Haldex Traction, a Swedish supplier. Haldex is running extra shifts to meet demand, but Volvo has been unable to keep pace with Haldex's supply stream.
Haldex supplies between 2,300 and 2,500 units a week to Volvo, said Ulf Ahlen, president of Haldex Traction. Haldex's awd division is working two shifts five days a week and will be adding a third shift soon, Ahlen said.
"We have not delayed Volvo by one minute so far," he said in a recent interview. "I see a struggle for Volvo to match volumes that quickly."
But even at Haldex's current pace, some of its subcontractors are working seven-day weeks to keep up with demand, Ahlen said. In addition to Volvo, Haldex has contracts with Volkswagen and Saab and will be the key supplier for the Ford Freestyle crossover vehicle when it arrives.
In the United States, Volvo has sold out the XC90 through July and is planning on launching the 2004 model this month. Once the Koping subassembly plant is up to speed, Volvo hopes to build at least 75,000 XC90s for global sale annually.
Link to above article (http://www.autoweek.com/cat_content.mv?port_code=autoweek&cat_code=carnews&loc_code=index&content_code=09085134)
By MARK RECHTIN | Automotive News
NEW YORK - A bottleneck at the Volvo subassembly plant in Koping, Sweden, has slowed deliveries of the automaker's all-wheel-drive vehicles, including the red-hot XC90 SUV, to the North American market.
Volvo has a joint-venture plant with Getrag in Koping (say "Sherping") that assembles and integrates chassis components, manual gearboxes and awd systems for final assembly at Volvo's factories, said Hans-Olov Olsson, president of Volvo Car Corp.
"Overall demand for all-wheel drive is increasing," Olsson said in an interview here last week. "Right now, we are running three shifts, seven days a week at Koping for all-wheel-drive componentry. We are going to invest more in capacity and tooling."
As a result, Volvo Cars of North America Inc. is shifting its emphasis toward delivering front-drive models, primarily for the Southeast and Southwest markets, said Vic Doolan, Volvo Cars CEO. "Between the XC90, R models and other all-wheel-drive models, we have some real constraints, and we are really struggling," he said in a recent interview.
In America, Volvo has awd available in all vehicles but the S40 sedan and V40 wagon. Volvo did not have a breakout of the number or ratio of awd installations.
Volvo uses an awd system designed and built by Haldex Traction, a Swedish supplier. Haldex is running extra shifts to meet demand, but Volvo has been unable to keep pace with Haldex's supply stream.
Haldex supplies between 2,300 and 2,500 units a week to Volvo, said Ulf Ahlen, president of Haldex Traction. Haldex's awd division is working two shifts five days a week and will be adding a third shift soon, Ahlen said.
"We have not delayed Volvo by one minute so far," he said in a recent interview. "I see a struggle for Volvo to match volumes that quickly."
But even at Haldex's current pace, some of its subcontractors are working seven-day weeks to keep up with demand, Ahlen said. In addition to Volvo, Haldex has contracts with Volkswagen and Saab and will be the key supplier for the Ford Freestyle crossover vehicle when it arrives.
In the United States, Volvo has sold out the XC90 through July and is planning on launching the 2004 model this month. Once the Koping subassembly plant is up to speed, Volvo hopes to build at least 75,000 XC90s for global sale annually.
Link to above article (http://www.autoweek.com/cat_content.mv?port_code=autoweek&cat_code=carnews&loc_code=index&content_code=09085134)