Photo: Nelson Ching/Bloomberg
Volvo Cars is about to start production in China after receiving approval from the National Development and Reform Commission to begin building vehicles in the country.
According to an Automotive News report quoting "three people familiar with the matter", Volvo has yet to receive final approval from the State Council, but chances for the company's request to be rejected are slim.
Being able to make Volvo cars in China means that Geely can now sell vehicles bearing the Swedish logo at a cheaper price, ditching the 25 percent import duty applied to all foreign vehicles. And since Volvo is quite successful in China, with sales gaining 31 percent in January and February 2013, Geely sits on very high ground.
With production on its way at the Chengdu manufacturing plant, Volvo will be looking to introduce ten new models in China over the next six years. The Swedish company is now selling seven models in China, which has become its second-largest market behind the United States.
Story via Automotive News
Being able to make Volvo cars in China means that Geely can now sell vehicles bearing the Swedish logo at a cheaper price, ditching the 25 percent import duty applied to all foreign vehicles. And since Volvo is quite successful in China, with sales gaining 31 percent in January and February 2013, Geely sits on very high ground.
With production on its way at the Chengdu manufacturing plant, Volvo will be looking to introduce ten new models in China over the next six years. The Swedish company is now selling seven models in China, which has become its second-largest market behind the United States.
Story via Automotive News
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