Volvo announces ambitious development plans for China

Volvo's sponsorship of the recently held 2013 Fortune Global Forum in Chengdu, Sichuan has been completed successfully, the National Business Dailyreported today. Volvo supplied 200 of its flagship long-wheelbase S80L midsize executive sedans for official use at the event. At the event, Geely Chairman Li Shufu proudly boasted about the new technology monitoring interior air quality in the Volvo S80L.

Additional details regarding Volvo's new production site in Chengdu were also revealed at the event. According to comments made by Volvo Cars China Senior Vice President Lars Danielson, the factory, Volvo's newest non-Swedish site since 1969, has already entered its final preparation phases and is currently undergoing safety and road testing. "The Chengdu [site] is Volvo's first Chinese factory and is very important to Volvo," Volvo Car China President and CEO Fu Qiang remarked.

Furthermore, construction at Volvo's second factory in Daqing, Heilongjiang is also underway. That site is scheduled to begin production around the end of next year.

In addition to the Chinese-made S60L, which is scheduled to make its debut later this year, Volvo has plans to begin domestic production of five more models in the near future. According to Mr. Li, Volvo is also working hard to expand its sales network in the country, with plans to expand into third- and fourth-tier cities. Mr. Danielson added that Volvo will continue to develop in the west and south of the country.

China is now Volvo's second largest market. A total of 4,415 Volvos were sold in the country in May, up 24.4 percent from a year ago. Over 23,000 Volvos have been sold over the first five months of the year. According to its marketing strategy, Volvo aims to sell 200,000 vehicles in China and 800,000 vehicles worldwide by 2020.