By on August 23, 2013
Pilot production begins at Volvo's Chengdu plant in China

Pilot production begins at Volvo’s Chengdu plant in China

Geely Automobile Holdings Ltd., owned by the same Chinese company that bought Volvo Cars in 2010, announced that it will soon start developing cars jointly with the Swedish company. The cars will be intended for the Chinese and export markets and will go on sale in 2015. Geely has ambitions to be China’s largest car exporter. Working jointly with Volvo is seen as giving Geely products some of Volvo’s reputation for safety and reliability.

“We have entered into actual research and development stage and I believe we can see the new product in the year after next,” said Geely Chief Executive Officer Gui Sheng Yue yesterday in Hong Kong.

Zhejiang Geely Holding Group Co., bought Volvo from Ford for $1.8 billion and last year the two companies signed a memorandum to “leverage its full access” to technology to develop vehicles. Earlier this year, Volvo announced that it was going to build a joint R&D center with Geely in Gothenburg. Volvo has also started assembling test builds at its first factory in China, in Chengdu, which will have an annual capacity of 120,000 cars.

Volvo Cars also announced today that it has received approval from the Chinese national government to build two more factories in China. The assembly plant in Daqing, in northeast China, will have a capacity of 80,000 units a year and is hoped to be fully operational some time next year. The facility in Zhangjiakou will be an engine plant and it will supply the Chengdu assembly operation where actual production will begin in Q4 2013. The two assembly plants are not expected to reach capacity for a few years.

Recent Comments

  • Re: 2015 Lincoln MKC 2.3 Ecoboost Review (With Video)

    VolandoBajo - OUCH! Though think of these conspicuous consumption points that can be amassed when sitting in Starbucks complaining about how you had to...
  • Re: QOTD: Which Manufacturer Has Most Lost Its Way?

    VolandoBajo - I just wrote a lengthy discussion of why FoMoCo lost its way only because it killed Mercury and kept Lincoln, and then when I went to post it,...
  • Re: Capsule Review: Volvo 240GL Estate

    gzuckier - The Mercedes 190E of the era had one logical feature I wish Volvo engineers had thought of: an electrically adjustable outside mirror; on the passenger side...
  • Re: Capsule Review: Volvo 240GL Estate

    gzuckier - Plenty of room in the engine bay. You can actually change the oil filter from above. Sadly, the oil that drools out when you change the filter has the...
  • Re: Capsule Review: Volvo 240GL Estate

    gzuckier - The great aerodynamic scare of the 90s left both Volvo and Mercedes vainly pointing out that aerodynamics aren’t going to solve our fuel mileage...
  • Re: Capsule Review: Volvo 240GL Estate

    gzuckier - Fluky point of failure, although I don’t know why it isn’t more frequent; caught the very corner of the rear bumper on a wooden stake one day....
  • Re: QOTD: Which Manufacturer Has Most Lost Its Way?

    Giltibo - Funny. I drive a 2008 Accord Coupe (K24 5MT) and work with a few people who own 3-series BMWs. At similar mileages (about 140K – 80M), their...
  • Re: Capsule Review: Volvo 240GL Estate

    gzuckier - I see a parallel evolution in the 240, the Checker cab, and the 55/56 Chevies
  • Re: Capsule Review: Volvo 240GL Estate

    gzuckier - the early manuals were a 4 speed with electric OD; not sure when they switched to proper 5 speed. Lots of malfunctioning ODs out there. Typical Volvo fashion,...
  • Re: Capsule Review: Volvo 240GL Estate

    gzuckier - The steel parts are pretty durable; the electricals not so much, on the early models. No worse than most other cars, just that they would be the point of...

New Car Research

Get a Free Dealer Quote

Staff

  • Contributing Writers

  • Jack Baruth, United States
  • Brendan McAleer, Canada
  • Marcelo De Vasconcellos, Brazil
  • Vojta Dobes, Czech Republic
  • Matthias Gasnier, Australia
  • W. Christian 'Mental' Ward, United States
  • Cameron Aubernon, United States
  • J Emerson, United States