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Volvo Made In China Been Approved After 3 Years

Posted on 8/30/2013 10:45:17 AM

Last Friday, Volvo Group announced that government of China already approved Volvo producing in China. According to Volvo’s plan, it will build a production base at Da Qing, an engineer production base at Zhang Jiakou, a research center at Shang Hai and a production base at Cheng Du. Volvo nationalization will benefit its marketing. It is an impossible mission for the company to achieve 200 thousand sales to 2015 if the nationalization has not been approved.

Geely Group has merged Volvo Auto successfully in 2010. And then Geely applied for nationalization. However, the application has encountered frustration because of its obscure company belonging. After 3 years, it is finally dust settle.

As reporter known from Volvo, the four projects mentioned above, Da Qing and Zhang Jiakou production base will be operated as joint ventures. Volvo Group and Geely Holding Group have found a joint venture, which Volvo takes 30% share and Geely Group takes others. Chairman of Geely Group, Shufu Li, has signed at both Part A and Part B, because Geely has 100% share of Volvo Group.

However, plant in Cheng Du will not adopt joint venture form, but belongs to a subsidiary of Geely Group, Zhejiang Haoqing Automobile Manufacturing Co., Ltd. The company has production certification of sedan, SUV and passenger car.

According to announcement by Volvo, its three plants will put into operation in the next half year. Da Qing plant will take test before the end of 2013. The company will produce sedan S60, upper medium SUV XC60 and upper medium MPV V60. And Cheng Du plant has operated already, the plant produce S60L. And Zhang Jiakou plant will go into operation this autumn, and provides engineers for Cheng Du and Da Qing plants.

Three plants belong to different area. It is a problem to keep the quality at the same level. Volvo strengths that all three plants have adopted and followed Volvo global purchase, QC, R&D and management standard. It has no difference from product made in Europe.

It is a very important year for Volvo in China. not only because of nationalization successful, but also for its dramatically increased sales. Volvo has launched V40, V60 and S60 step by step in China. According to its statistics, it has sold 28,703 in China, which increases 34.3% over the same period of last year. China becomes the second largest market for Volvo, which is outranked by US only.

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