Volvo intends to increase its retail network in China to almost double while expanding to new luxury segments. This increases its model range almost three times. It also aims to boost engineering and technology capability in the region. Senior Vice President Freeman Shen at Volvo's China operation commented that the expansion is an essential part of a plan to shell out at most $11 billion worldwide by 2016.
Shen also stated that the company considers China to be "a very important home market" and as their "second home." Zhejiang Geely Holding Group bought Volvo in 2010 for $1.7 billion from Ford Motor Co.
At present, China is the third biggest market of Volvo, Shen further revealed. Volvo intends to put 200,000 vehicles for sale in the country by 2020. This is far greater than the 47,150 units achieved by the company last year.
Within 10 years, Volvo aims to increase sales by 100% to 800,000 vehicles worldwide. In an effort to grow in China, the automaker is ramping up its business in the nation. By 2017, the retail network of Volvo in China will reach 220 dealers from 125 in 2011.
Shen noted that they see "a lot of" huge retail companies from the United States. However, he did not mention these specific U.S. retailers.
Additionally, Volvo has ambitious plans for its engineering and product capability in the Chinese nation. It currently sells six models in the country, but intends to launch 10 new models within six years.
According to a Bloomberg report, the upcoming vehicle models are larger and more high-end. These new models also include small and medium vehicles like the V40 hatchback, as Bloomberg reported. [source: Autonews]