You probably know by now that China has one of the fastest growing automotive markets in the world and more manufacturers are either building new factories or forming alliances with other companies that are already established in the country, in their search of grabbing more and more customers.
Volvo is about to do the same thing as at a press conference held yesterday in Beijing, the Chinese-owned Volvo Cars revealed its plans to construct a new factory in Chengdu and will continue investigations for a second plant in Daqing, located in NE China. The automaker said that the deal is still pending approval from the local government.
The aforementioned Chengdu factory will manufacture only Volvo cars and will have an initial output of about 100,000 cars per year and the production is estimated to start sometime in 2013. The automaker said that this decision to expand in the Chinese market will not have consequences for the operations and the employment in Europe.
If you don’t remember, Volvo was bought from Ford by China-based Geely in 2010. The Swedish automaker said that the city of Shanghai will be the Volvo Car China’s HQ and centre for product development, design and sourcing.
The officials at Volvo affirmed that they plan on increasing the company’s presence in China and they want to sell approximately 200,000 units / year in the country by 2015. In 2010, Volvo’s global retail sales reached 373,525 units and only 30,000 were commercialized in China. In comparison to 2009, they’ve sold 11.2% more cars.