Volvo Launches XC40 Production in China

Volvo Car Corp. has expanded production of its XC40 small crossover, which had been built exclusively Europe, to a plant in Luqiao, China, to meet surging demand.

The carmaker has been shifting production of various models in response to trade tensions between the U.S. and other markets, media reports note. This has constrained XC40 output at Volvo’s factory in Ghent, Belgium.

The company has sold more than 100,000 XC40s since the crossover was launched in late 2017. Vehicles produced in Luqiao will be sold in China. Volvo also plans to produce an unnamed electric car in Luqiao.

Located near Shanghai, the Luqiao facility currently makes Lynk & Co.’s 01 crossover vehicle and is due to add the Polestar 2 electric sedan next year. All those models ride on the Compact Modular Architecture platform that Volvo and Geely co-developed.

Geely purchased Volvo in 2010 and launched Lynk in 2016. Polestar, which was launched in 2017, is jointly owned by Geely and Volvo.