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New factory to be built in China; C30s and V70s to be built Shanghai from 2012
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19 August 2010

Volvo’s new owner Geely has been given the green light to build a new Volvo factory in Shanghai.

According to local press reports, the 800,000sqm factory will open in the second half of 2012 and have a capacity of 300,000 units per year, not far short of Volvo’s total 2008 global sales of 375,000.

Read more on new Volvo CEO Stefan Jacoby's plans to take Volvo upmarket

The new factory, situated in the Jiading Industrial Zone, will reportedly make the C30 and V70. Jiading will also be host to Volvo China’s administrative headquarters, a new research and development centre and a Volvo museum.

Much of this investment has been underpinned by the State-controlled Shanghai Jiaerwo Investment Company, formed last February.

According to Chinese press reports, it signed a joint venture with Geely and provided around £94m to help the company both purchase Volvo and build the new facilities.

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19 August 2010

[quote Autocar]Jiading will also be host to Volvo China’s administrative headquarters, a new research and development centre [/quote]

Volvo will soon be more Chinese than Swedish then if a major department is to be based in China. A bit like MG, We'll start seeing new Volvo models on sale in China before Europe.

EDIT: I just read it again, and have realised that what I have just said is nonsense..

"Jiading will also be host to Volvo China’s administrative headquarters, a new research and development centre"

I'm a prat.

19 August 2010

Volvos are to remain built in the locations they currently are (Sweden and Belgium). It's only cars for the Chinese market that are to be be built in this new factory.

19 August 2010

[quote Volvophile]It's only cars for the Chinese market that are to be be built in this new factory[/quote]

Given its capacity, i'd say that's incredibly unlikely going forward - whatever any initial PR spin may say.

19 August 2010

[quote philcUK] i'd say that's incredibly unlikely going forward[/quote]

But, what about in the future?

19 August 2010

Say goodbye to European car manufacturing.

I speak from experience. We in the electronics industry watched as factories were built in China, on the basis that they'd compliment the European ones. First to go were the ones in the UK, but Germany kept theirs. Now it seems even they're losing their factories, and Germany is a European country with a trade surplus! Think about that - all we ever hear is how the UK has a trade deficit.

Within a decade you'll see UK car factories close in preference of ones in these developing countries, be it India or China.

20 August 2010

Volvos are already built in China, and have been for a few years. They are produced at the Changan factory in Chongqing. I know that the S40 and S60 models are definitely built here, alongside the Focus and Mondeo. As I understand it, when Volvo/ Geely pull out of Chongqing, Peugeot are moving into produce new models, but not sure if that is with Changan or not. Many "European" models are now produced in China, and also special variants of them ( mainly LWB.) I think the West have got a few years yet before the Chinese take over their market, but rest assured when they come it will make things interesting. The good thing for the European market is Chinese tastes are very different from Europe, so hatchbacks are out and small saloons, which sell like cold cakes in Europe are more common. My guess is the Septics have move to worry about than Europe in the mid term.

20 August 2010

Come on, Geely hasn't confirmed the news. The original information is from the Jiading's official website. If I say I'm hot without showing a picture here, will you believe me? Read the news here: In response to rumors Friday that Volvo's new plant in Jiading, Shanghai has been approved by the National Development and Reform Commission, and it would initiate production of Volvo C30 and V70 in the second half 2012, Geely's public relations manager, Yang Xueliang, refused to reveal any valuable information this morning and said that the company will issue an official news release in coming days. Source: Global Link:

20 August 2010

....just to add to Saabs woes

20 August 2010

What's wrong with 'built in China'? I'd prefer a car built by a team proud of what they are doing.

And if it also lowers the costs so we can get more car for our money, what's the problem? We already have Nissan and Hyundai - and maybe Land Rover too - being built in India, Volkswagens in South America, etc etc. It's the design and quality of the components that counts, not where the factory is located.

20 August 2010

[quote Big S] What's wrong with 'built in China'? [/quote]Nothing ... if you don't mind Volvo no longer being of Swedish design; if you don't mind loyal Swedish workers losing their jobs, some their entire livelihoods; if you don't mind having little if any consumer rights under Chinese law; if you don't mind a non-democratic country making your goods; if you don't mind alterations to Volvos so they appeal to a Chinese aesthetic sensibility; if you don't mind a farming village and its inhabitants plus agrarian land that feeds people cleared to make way for the factory; if you don't mind low wages paid to Chinese workers so you can have your Volvo that bit cheaper than made in Sweden ...


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