Volvo boosting production to meed the demand

Article by Christian Andrei, on September 20, 2010

To cope with the increase in demand for its top-end models, production at Volvo Car Corp.’s plant in Torslanda, Sweden, is boosted by 7%. In a release, Volvo said that from a combined output of 45 units a day of XC90 and XC70 premium crossovers, V70 and V60 premium wagons and the flagship S80 sedan, the factory will now be making 48 units a day.

In the statement, Volvo Senior Vice President of Manufacturing Magnus Hellsten said that the boost in production concretely demonstrates that Volvo Cars “is heading in the right direction."

He added that the increase results in the plant's yearly production increasing from 145,000 to 155,000. Hellsten estimates that Volvo will be able to handle a continued increase in demand for its cars during 2011.

Very recently, Volvo added a fourth shift at its engine plant in Skovde, Sweden, to raise the output of diesel engines to 4,000 from 2,700 units a week.

Industry group ACEA said that for the first 8 months of the year, Volvo's European sales are up 18% to 147,876 units. Zhejiang Geely Holding Group, which completed its purchase of Volvo from Ford Motor Co. just last month, said that it may construct three plants in China to produce Volvo cars.

Geely spokesman Ning Shuyong told Reuters that if the plan pushes through, Zhejiang Geely will achieve a combined capacity to build 300,000 Volvos annually in China. [via autonews - sub. required]

Topics: volvo, production

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