Volvo to build C30, V70 models in China

Article by Christian Andrei, on August 26, 2010

Volvo Car Corp. will be building a new assembly plant and a new r&d center in the Shanghai suburb of Jiading, according to a post in the Jiading government Web site. Zhejiang Geely Holding Group Co., which purchased Volvo from Ford Motor Co. this month, is asking approval from the central government for these projects.

The new plant, which will assemble the Volvo C30 entry-premium coupe and the Volvo V70 medium-premium station wagon, is expected to start operations in 2012 with an annual capacity of 300,000 vehicles. Meanwhile, the r&d center will start construction next March or April and will open in the second half of 2012.

This center will boast a total floor area of 100,000 square meters and it will have a museum on the site that will illustrate Volvo Car Corp.'s history. The details about these projects were confirmed by the local government; but according to a statement from Volvo on Aug. 20, a plant location has yet to be decided.

For now, the Volvo S40 and a long-wheelbase version of the Volvo S80 are being made in Chongqing. A joint venture of Changan Automobile Co., Ford Motor Co. and Mazda Motor Corp. operates this plant. In the first half of the year, Volvo sold 191,832 cars, up by 20% from a year earlier. In China (Volvo's fourth-biggest market), deliveries grew by 88% to 15,497 cars in the period, partially attributed to the introduction of the S80L last year.

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