Volvo’s China Production Plans Likely to Miss June Target
Published May 20, 2013
According to a recent report in China Financial Report, Volvos plans to bring their new Chengdu plant online by June maybe at risk of delay.
In 2010 when Geely bought Volvo, the first step was to bring Volvo to the Chinese market to boost global sales with the first Chinese factory being announced to be settled in Chengdu under the name of Zhong-Jia Automotive (Chengdu) Automotive Production with a registered capital of 500 million RMB.
Journalists were able to visit the Chengdu factory unimpeded by a non existent security and found that the factory did not appear to be ready to produce the China only S60L for the Chinese market, and also noted that the welding, painting and production areas were not yet completed.
Volvo is a major sponsor of the Asia Fortune Forum and is expected to open the new factory during the forum period due to visits from leading industry people and also high level executives from Volvo Sweden.
The new factory will have a capacity of 200,000 cars per year in its first phase with the factory opening in June but with full scale production thought to have been pushed back until October 2013.