Volvo Car, which is owned by China-based Geely Holding Group, has set a target for sales in 2011 to reach 50,000 vehicles in China, according to Richard Snijders, who is the president and CEO of the company’s China distribution unit. This latest target would signify a boost from the slightly more than 30,000 units sold in the country last year.
China sales increased 62 percent in the second-quarter this year as reported by Volvo last week.
Geely Holdings, which is the parent of Geely Automobile Holdings, obtained Volvo from Ford Motor Co. in August last year. This purchase marks the biggest overseas vehicle acquisition in China.
Last February, Volvo CEO Stefan Jacoby disclosed its intention to invest at most $11 billion internationally in new facilities and product development within five years.
Last week, Volvo recorded higher earnings for the second quarter, thanks to the rising sales of new vehicles in North America, China and Europe.
The vehicle manufacturer disclosed that operating earnings before interest and taxes (EBIT) was 600 million kronor or $95 million, which is an improvement of 170 million kronor versus the same period last year.
Revenue was 33 billion kronor, an increase of 3.5 billion kronor from the same period in 2010. Retail sales in the second quarter increased 26.6 percent to 123,919 vehicles. Volvo has announced its intention earlier this year to increase capacity and hire 600 additional blue collar employees.