Volvo takes over Pininfarina factory

The Swedish carmaker has reached an agreement with the Italian design firm, which will see Volvo take over operations of the assembly plant in Uddevalla, Sweden by May 2013. The factory currently builds the Volvo C70 Convertible, and was previously run by Pininfarina Sverige AB, as part of Pininfarina.

"The joint venture between Volvo Car Corporation and Pininfarina has been fruitful, a true win/win situation," said Volvo Cars President and CEO Stefan Jacoby in a statement released to the media. "When we now put an end to our cooperation it is with a mutual understanding and in a time with new challenges for both companies."

The factory will continue to produce the C70, and the move will give Volvo full access to another factory as part of its expansion plans, as well as help Pininfarina cut down operation costs. The Italian design firm has been subjected to much speculation as to its financial status, and was previously linked to a takeover bid by China's BAIC.

Source: Volvo