Swedish carmaker Volvo Cars could build up to three plants in China, according to Volvo CEO Stefan Jacoby. Volvo, which is owned by China's Zhejiang Geely Holding Group Co., aims to raise production in China.
In an interview last Wednesday at an automotive conference in Stockholm, Volvo said that its board will be deciding on the sites as soon as it gets the approvals from the country's regulators.
He explained that it would rely on the strength of its sales in China in the future. He mentioned that the southwestern city of Chengdu, a production hub for carmaker Geely Automobile Holdings Ltd., is a possible location.
Last August, Zhejiang Geely bought Volvo from Ford Motor Co. for about $1.5 billion. The expansion in China is believed to be the key to Volvo’s target of doubling sales to 800,000 cars in 10 years.
Volvo, which seeks to develop its dealer network, has yet to decide on the methods and the time frame for its plan to expand production capacity in China.
Currently, Volvo builds the S40 and S80L cars for the Chinese market at a factory co-owned by Ford and Chongqing Changan Automobile Co. Volvo can still use the plant for two more years. Jacoby, who previously headed US operations of Volkswagen AG, joined Volvo last August. [via autonews - sub. required]