Volvo Receives Okay For Chinese Production
Published March 18, 2013
Volvo announced today that as of February 7th it had received official approval from Chinas National Development and Reform Commission (NDRC) for the development of a new production plant in Daqing, Heilongjiang province, and also an engine factory in ZhangJiaKou as well as a new R&D center in Shanghai. Volvos factory in Chengdu already received its official nod in October last year.
As Volvos new owners, Geely are hoping to push Volvos sales to 800,000 units per year by 2020 and push Chinese Volvo sales from around 30,000-40,000 units per year to 200,000 units per year by 2015 and take 15-20% of the Chinese luxury market with 200 dealers in China. One of the first cars to be produced in the Chinese market will be a China only S60L which should be put into production later this year.
Volvos application for the Chengdu plant was put forward as a single Chinese brand, which does not need permission from the NDRC but instead from the Ministry of Industry and Information Technology, whilst the Daqing factory was established as a joint venture between Geely-Volvo and had to have NDRC approval.