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Volvo Eyes Eventual Car Exports from China
Volvo Cars might eventually use excess capacity in China to make vehicles for export to Asia and other regions, CEO Hakan Samuelsson tells Bloomberg News.
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Volvo Cars might eventually use excess capacity in China to make vehicles for export to Asia and other regions, CEO Hakan Samuelsson tells Bloomberg News.
Volvo, which is owned by Zhejiang Geely Holding Group Co., opened its first Chinese assembly plant this week in Chengdu. Samuelsson notes that Volvo first must ramp up the factory, which will have annual capacity of 120,000 vehicles, and ensure quality before looking abroad.
The main reason for building the new facility was to make cars for the China's vast market, he says. The company plans to open a second assembly plant late next year in Daqing in northern China that will add 80,000 units of annual capacity.
Volvo aims to quadruple its sales in China to 200,000 vehicles in five to six years. The company has set a goal of doubling its global sales to 800,000 units by that time.
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