In a move that underlines the rise of China as an automotive global power, Hakan Samuelsson, President and CEO of Volvo Car Group has confirmed that a third of Volvo’s target global production of 800,000 units annually will be sourced from one of three Chinese plants.
Since 2010 Volvo has been owned by Zheijiang Geely Holding Group, and the two partners have worked together on engineering and investing in a wider production baase for Volvo, traditionally linked to Sweden.
Unveiling two new versions of the flagship S90 saloon, Mr Samuelsson also announced that production of the S90 will soon end in Europe and henceforth be exclusively at their factory in Daqing in China. To further balance currency risk Volvo is building a new facility in the US, in South Carolina.
The next generation of the Volvo V40 will be made in Europe and at a new factory being constructed in Luqiao, south of Shanghai. (UK Independent)