Volvo Cars expands production in China, unveils new China strategy

Volvo Cars unveiled a new manufacturing strategy for China in which production capacity will be increased and China will be developed into a global manufacturing and export hub servicing growing demand for its new range of cars in the United States, Europe and Asia Pacific.

According to a company press release on Wednesday, Volvo Cars said it would make its top-of-the-range S90-series cars based on its Scalable Product Architecture (SPA) at its plant in Daqing, Heilongjiang province, in northeastern China.

It also announced Wednesday that production of the new S90 premium sedan will in future be moved from Europe to China.

The Swedish company also announced that existing and future 60-series medium-sized SPA-based cars will be built at its plant in Chengdu, Sichuan province, in southwest China, while its planned 40 series smaller cars, based on its Compact Modular Architecture (CMA), will be made at a plant that is currently being built in Luqiao, 350 km south of Shanghai.

"With three plants -- and the designation of one car line for each plant -- Volvo creates an efficient production structure ensuring future capacity for growth," said Hakan Samuelsson, president and chief executive.

Volvo's expanded production capacity in China forms an integral part of its broader global industrial footprint, the company said.

Volvo currently operates two plants in Europe, in Sweden and Belgium. The Sweden plant in Gothenburg will continue to make 90 series and 60 series SPA cars while its plant in Ghent, Belgium, will in future be a CMA-only production facility making new 40 series cars.

Volvo Cars, which was acquired by Chinese automaker Geely in 2010, employs nearly 29,000 people worldwide. Endit