Volvo has announced that it will build two manufacturing bases in the west China city of Chengdu and northeastern city of Daqing over the next five years in an ambitious expansion that aims for car sales of 200,000 units in China by 2015.
“China is Volvo’s second home ground and plays a vital role in Volvo’s success,” said Volvo chief executive officer and President Stefan Jacoby at a press briefing in Beijing.
“Our goal is to clinch 20 percent of the Chinese luxury car market by 2015,” he said.
Jacoby said the establishment of the two manufacturing bases was endorsed by Volvo’s board of directors, but was yet to be approved by the Chinese government.
Last month, the Swedish car manufacturer announced the establishment of its Chinese headquarters and an attached technology centre in Shanghai.
Jacoby did not give details about the two plants, but sources familiar with the investment said the Chengdu manufacturing base would cost Volvo 5.4 billion Yuan (about 820 million U.S. dollars).
The manufacturing base in Chengdu, capital of Sichuan Province, would comprise a vehicle assembly plant, an engine plant and a transmission plant, said Li Hua, deputy director of the economic development zone of Chengdu.
The vehicle plant was slated to begin production by 2013 with an initial annual capacity of 100,000, Li said.
A vehicle resembling Volvo’s popular model S60 would be assembled in the plant, Li said.
The manufacturing base would include Volvo’s three western centres for research, parts and component procurement and marketing, Li added.
Source: Xinhua News