Geely to build Volvo cars in southwest China by 2013

Article by Christian A., on February 21, 2011

Reuters’ sources said that Volvo plans to make cars in Chengdu, China, where there is a huge market for luxury cars. This site is near Ford Motor Co.'s plant in Chongqing where Volvo models are also manufactured.

Zhejiang Geely Holding Group has been searching for a new Volvo production base since it took over the Swedish carmaker from Ford Motor Co. in August 2010, marking China's largest auto acquisition.

Several Chinese cities, including Shanghai and Daqing, since August 2010, have been competing for Volvo's China car plant, which could be a major boost to the local economy.

A source told Reuters that Volvo cars will be made in Chengdu and Shanghai will be Volvo's China headquarters and an R&D center.

Industry observers lauded Volvo's decision to establish its China plant in Chengdu, a fast growing luxury car market where Mercedes-Benz, Audi and BMW had set up shops years ago.

Jenny Gu, a J.D. Power Asia Pacific analyst, said the new Volvo plant already has a mature suppliers' base ready for it even before it starts operation. [via autonews - sub. required]

Topics: geely, volvo

If you liked the article, share on:

Comments

Recommended

We first heard of the fifth generation SEAT Ibiza earlier this year, and last week, the company finally revealed the all-new Ibiza at the international launch in Barcelona. The new...
by - May 22, 2017
The aftermath of the Takata airbag recall still largely resounds in the automotive industry, as big automotive companies like BMW, Mazda, Subaru and Toyota were extensively hit with what is...
by - May 22, 2017
Amid reports that major rival Volkswagen would cease producing 2016 and 2017 model year diesel cars following the wake of the "Dieselgate" scandal, it’s believed that Chevrolet sees its opportunity...
by - May 22, 2017
Honda recently whips out a new feature for the S660 Bruno Leather Edition. Any guesses? Well, it’s going to be an iPhone app that goes by the name Rev Beat....
by - May 22, 2017
And so it goes, Ford is not at all closing its doors to an all-electric F-150 pickup. The American manufacturer initially laid out its plans for an F-150 hybrid earlier...
by - May 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries