A Volvo Cars board member says that the company may start production in Chengdu, China, to boost sales in the country. The Swedish car maker was acquired by Zhejiang Geely Holding Group Co. from Ford Motor Co. in August for about $1.5 billion.
Marko Peltonen, who represents the IF Metall union on the board, says that Volvo's board recently agreed that taking over an existing Geely Automobile Holdings Ltd. factory in Chengdu and converting it to produce Volvo cars would be the cornerstone of Volvo’s China strategy. He adds though that no decision has been taken.
Chief Executive Officer Stefan Jacoby says that expanding in China is essential to Volvo’s aim of doubling sales to 800,000 cars in 10 years. He said in October 2010 that Volvo may need as many as three plants in China.
The board also appointed Jan Gurander as chief financial officer starting latest in April 2011. Currently, Gurander is CFO at MAN Diesel & Turbo SE.
Volvo says that Hans Oscarsson will continue as acting CFO until Gurander takes over. Volvo adds that Lex Kerssemakers, currently head of Volvo Cars Overseas Corp., will be head of a new function -- product strategy and vehicle line management. [via autonews - sub. required]