Currently reading: Volvos to be built in China
New factory to be built in China; C30s and V70s to be built Shanghai from 2012
Autocar
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1 min read
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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Volvophile 20 August 2010

Re: Volvos to be built in China

droumsullivan wrote:
I know that the S40 and S60 models are definitely built here, alongside the Focus and Mondeo.

To be pedantic, it's actually the S40 and a long wheel base version of the S80 that are built there already. The last S60 was not a contemporary of the former cars, being launched in 2000.

shortbread 20 August 2010

Re: Volvos to be built in China

Its obvious that Geely is looking for a steady shift in production from Sweden to China. If it was just local demand all they had to do was to add additional capacity to existing operations, but this is a greenfield project.

Feel sorry for Volvo, especially since the R&D operations are to be shifted as well. No offence, but the chinese make cheap but very very tasteless cars. That is not what Volvos are about. This might work in some Asian markets but will kill the brand in the West.

Lord Snooty 20 August 2010

Re: Volvos to be built in China

Los Angeles wrote:

Big S wrote:
What's wrong with 'built in China'?
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 ...

And if you don't mind a communist country with an appalling record in human rights earning billions in foreign currency, a large slice of which could be used to expand it's already massive armed forces.

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