Volvo Revs Up Manufacturing in China


  • Volvo China Picture

    Volvo China Picture

    Volvo's industrial base in China is growing. | August 23, 2013

Just the Facts:
  • Volvo continues to rev up its China operations, announcing that it has received government approval to begin manufacturing at a second car assembly plant and an engine plant.
  • The Chinese government has approved Volvo plants in Daqing and Zhangjiakou, along with an earlier license for a plant in Chengdu.
  • Volvo wants to sell 200,000 cars in China by 2018.

GOTHENBURG, Sweden — Volvo continues to rev up its China operations, announcing that it has received government approval to begin manufacturing at a second car assembly plant and an engine plant.

The Chinese government has approved Volvo plants in Daqing and Zhangjiakou, along with an earlier license for a plant in Chengdu.

Volvo wants to sell 200,000 cars in China by 2018.

"The plants in China will be operated in full accordance with Volvo Cars manufacturing standards and procedures, equal to those of the company's European plants," Volvo said in a Friday statement.

The assembly plant in Daqing is under construction and the first pre-series cars will be built in late 2013 for training purposes. The plant is expected to be fully operational in 2014. Volvo did not say which models will be built there.

The Chengdu plant is expected to begin production in the fourth quarter of this year. The engine plant in Zhangjiakou will become operational in the fall and will supply Chengdu and Daqing.

Geely Automobile Holdings Ltd., whose Chinese parent bought Volvo Cars in 2010, will start selling vehicles jointly developed with the Swedish company in 2015, according to Bloomberg.

Edmunds says: Volvo has big plans for global sales and these moves are designed to edge it closer to its target of selling 800,000 cars worldwide by 2020.

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