Volvo Car Will Build a Plant in China

Swedish car maker Volvo, owned by the Chinese company Geely, has unveiled its strategy for China, which includes the construction of a factory and the possible introduction of a second factory, in order to attain sales of 200,000 units in China in 2015.

President and CEO of Volvo, Stefan Jacoby, said that China will be the second largest market for the company and a cornerstone for success in the future. Also stated that projects in China will have no impact on the European factories in Sweden and Belgium.

Scandinavian Corporation reinforced a factory in China’s Chengdu City, located 1,600 kilometers west of Shanghai. This new factory will be operational by 2013 and attain an yearly production of 100,000 units.

In addition, the Swedish multinational is considering lifting a second factory in the Asian giant, which would be located in Daqing, northeast of the country. Volvo established an office in Shanghai, as well as a center for product development and design.

Volvo aims to reach sales of 200,000 units in the Chinese market in 2015. To do this, expand its dealer network to 220 stores, compared to the 106 centers that currently.

The Nordic firm sold worldwide a total of 373,525 units last year, which translates into an increase of 11.2% compared with figures for the previous year.