On the cheap: Volvo workers in Belgium and Sweden are worried manufacturing could move entirely to low-cost labour markets

The motoring world is closely watching China's plans for Volvo cars. Volvos have long been a strong favourite of the professional classes and are soon to be made in Beijing. In fact the giant industrial Geely group who have just bought the Swedish company from Ford for €1.34bn plan a factory that will manufacture 300,000 Volvo branded cars – as many Volvos for China as are made each year for all other markets.

But what is of greater interest to companies such as Ford, GM, VW/Audi and Mercedes Benz is the strategy the new owners will have to worldwide sales in the future. Premium brand, low cost, cheap labour cars could be on the way. Ford paid about €5bn for the marque 11 years ago and had to have a brave face on the selling price as Volvo did not make a profit for the past five years.

Observers feel that a move upmarket left Volvo lost between BMW and Mercedes Benz and Ford, Toyota and VW at the volume end. Geely boss, Li Shufu, has given a clue saying he wants to stabilise European and American market sales as well as advancing sales in China and other markets.

Geely has been eager to move into western markets and the technology and brand recognition of Volvo is seen as the perfect answer. Volvo is to be kept as a separate company within the Geely group, but there are fears in Sweden and Belgium, where Volvo has big manufacturing plants, that there may be moves in the future to cheaper labour areas in the world. India and eastern European countries have been chosen by other car makers who tend to share technology and manufacturing facilities.

Volvo has long been admired for the long life of the product, just under 20 years for their cars.

Geely is also anxious to take over the London black cab maker, Manganese bronze, with production going from coventry to Shanghai.