Beijing, China – Volvo plans to invest in a new plant in Chengdu, China and is considering a second one in Daqing. The company made the announcement at a press conference in Beijing outlining its strategy for growth in China. The plants will depend on approval from the Chinese authorities.
“We regard the Chinese market as the second home market for Volvo Car Corporation and a very important part of the plan to build a successful future for the company,” said president and CEO Stefan Jacoby.
In August 2010, Volvo was purchased by China’s Zhejiang Geely Holding Group. Since then, in addition to a new board of directors in Sweden, Volvo formed an entirely new organization, Volvo Cars China Operations. A new Volvo Car China headquarters has been established in Shanghai, including a technology centre and all functions for purchasing, design, sales and marketing, manufacturing and finance. The company has a sales volume goal of about 200,000 cars in the Chinese market by 2015.
The planned facility in Chengdu, 1,600 km west of Shanghai, will produce only Volvo cars. It is based on a business case of approximately 100,000 vehicles per year, with production estimated to start during 2013. The company said that the expansion in China will not affect operations and employment in Europe. The board has also approved a decision to continue investigating the opportunities for establishing a plant in Daqing in northeastern China.
“We continue to uphold our principle that Geely is Geely and Volvo is Volvo,” said Li Shufu, chairman of the board of directors. “A more globalized, more focused luxury brand will turn our vision of a growing and profitable Volvo Car Corporation into reality. The company will continue to contribute to the development of the global automotive industry by introducing world-first innovations that make an outstanding brand win in the marketplace.”