Volvo Car Corp. will be adding 10 new models in China within the next six years to its current offering of just six models as part of a strategy to compete with Audi and BMW in this market. China's Zhejiang Geely Holding Group is the owner of Volvo, which said in an e-mail that included in its future offering are "bigger and more luxury high end" vehicles, as well as medium- to small-sized cars like the V40 hatchback.
Geely is hoping that sales will double to 800,000 cars worldwide in 10 years. Currently No. 5 when it comes to luxury-car sales in China, Volvo intends to invest up to $11 billion globally by 2016 for its expansion plans, according to Volvo Chief Executive Officer Stefan Jacoby in a statement last year.
When interviewed recently in Beijing, Zhejiang Geely Chairman Li Shufu said that huge investments will be made for the development and facility construction in China.
He also expressed confidence that Volvo will be able to achieve its growth target in China as well as globally. Volvo is planning to sell 200,000 cars in China by 2015, compared with 47,150 units in 2011.
In addition, Volvo is seeking the approval of the government to build plants in the city of Chengdu, southwestern China, and a second factory in northeastern city of Daqing. Volvo has been working to begin local production in China in 2013. Li said that this is out of the company’s control since the government will still have to approve it. [source: FinancialTimes]