Volvo starts building XC60 in Chengdu, China

Article by Christian Andrei, on November 11, 2014

Volvo Cars has commenced building the XC60 SUV at its sites in Chengdu, China, where it currently produces the S60L. The start of XC60 production means additional 500 manufacturing jobs at its site in Chengdu, China. The production of the XC60 in China marks a step toward supplying locally built cars in China and exporting vehicles abroad.

Volvo sold 98,309 XC60s in the first nine months of 2014 for a 20-percent jump over the same period in 2013, making it the brand’s best-selling model. Overall, Volvo sold 10-percent more vehicles in the nine-month period to 379,880 units globally.

Volvo chief executive Hakan Samuelsson remarked in a statement that the China-built XC60 will be instrumental in boosting the carmaker’s overall growth in the country, which it considers as it largest market.

Thanks to strong sales performance in the country, Volvo was able to muster 16 consecutive months of growth despite a slowdown in the United States.

The carmaker is now trying to solve on how it would solve its weak performance in the US, which used to be its largest market. Volvo is targeting to nearly double annual sales to 800,000 cars by the end of the decade.

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