Volvo to start production in China

Volvo Car’s acquisition by Chinese car company Geely Holding signaled the future of the brand: as a luxury car for the Chinese market. Manufacturing in China is about to begin. It’s unlikely that Philippine Volvos will be sourced from China, as production in that country is usually for the Chinese market only. Here’s the news from Volvo:

Chinese government authorities have approved Volvo Car Group’s (Volvo Cars) establishment of manufacturing plants in Daqing and Zhangjiakou. As a result, Volvo Cars’ full Chinese industrial footprint, including Chengdu, has been approved.

The assembly plant in Daqing is under construction and the first pre-series cars will be built late 2013 for training purposes. The plant is forecast to be fully operational in 2014.

The engine plant in Zhangjiakou will become operational during the autumn of this year and will deliver engines to Volvo Cars’ manufacturing plant in Chengdu, where serial production will start in the fourth quarter of 2013. Zhangjiakou will also supply the assembly plant in Daqing.

The plants in Daqing and Zhangjiakou will be operated in the form of two joint venture companies, in which Volvo Cars initially will hold 30 per cent. The remaining part will be held by companies within Geely Holding Group.

The Chengdu plant will be operated under an extension of an already existing production license held by a Geely Holding company. The manufacturing license for Chengdu was granted in June.

The plants in China will be operated in full accordance with Volvo Cars manufacturing standards and procedures, equal to those of the company’s European plants.