Volvo to Build Plant in China
Volvo says that it has decided to build a manufacturing plant in the city of Chengdu. At the same time, the company is looking for a location for a second facility, probably in the Daqing area.
So far, Volvo did not announce what models it would build in China. The executives of the two companies agreed on the strategy last December, when the details surrounding the plan were very scarce.
"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 Stefan Jacoby, Volvo CEO.
"We will build an entirely new plant in Chengdu and further investigate the opportunities for establishing anadditional factory in Daqing. Our production in China will, however, not have any impact on decisions affecting capacity utilization of our plants in Sweden and Belgium."
The Chinese branch of Volvo will be headquartered in Shanghai, where a centre for product development, design and sourcing will also be based. To support the increasing presence on the Chinese market, Volvo will expand the dealership network from 106 to 220 by 2015 and will also employ new staff.