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.
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.