Volvo Cars expands production capacity in China

Volvo Cars, the premium carmaker, has unveiled a new manufacturing strategy for China in which production capacity will be increased and China will be developed into a global manufacturing and export hub, servicing growing demand for its new range of cars in the U.S.A, Europe and Asia Pacific.

Volvo Cars will make its top-of-the-range S90 series cars based on its Scalable Product Architecture (SPA) at its plant in Daqing, Heilongjiang province, in Northern China. It also announced today that production of the new S90 premium sedan will in future be moved from Europe to China.

The Swedish company also announced that existing and future 60 series medium-sized SPA-based cars will be built at its plant in Chengdu, Szechuan province, in Western China, while its planned 40 series smaller cars, based on its Compact Modular Architecture (CMA), will be made at a plant that is currently being built in Luqiao, 350km south of Shanghai.

"With three plants - and the designation of one car line for each plant - Volvo creates an efficient production structure ensuring future capacity for growth," said Hakan Samuelsson, President and Chief Executive of Volvo Cars. The Luqiao plant, which is owned by Zhejiang Geely Holdings but operated by Volvo Cars, will make Volvo's new range of smaller 40 series CMA-based cars, as well as CMA-based cars for Lynk & Co, the new car brand launched in October by Geely Auto, highlighting the growing industrial synergies being developed by the automotive group.

Volvo's expanded production capacity in China forms an integral part of its broader global industrial footprint.