Volvo’s board of management has agreed to terms proposed by parent company Geely for the establishment of three new production sites in China, according to a posting on the Geely’s official web site. In a move that looks set to make China, Volvo’s second largest market, the Swedish car maker says it has rubber stamped plans drawn up by Geely chairman, Lee Shufu, for plants in Chengdu, Shanghai and Daqing.
Volvo had earlier indicated it was not prepared to make any firm decisions on future expansion plans until it had returned to profitability. However, the need to raise volumes and economies of scale across all model lines appears to have forced the decision to ramp up operations in China – now the world’s largest car market. As yet there is no indication what models Volvo plans to produce in China, although rumors are the S60 could be produced in a former Geely factory in Chengdu in the first stage of the plan. Does anyone know how to say Volvo in Chinese . . . ?