November 07, 2016 @ 05:44 PM

Volvo unveils new strategy and cranks up production in China

New strategy will turn China into a global manufacturing and export hub to meet growing demand in US, Europe and Asia Pacific

In order to meet the growing demand for their new range of cars, Volvo Cars has unveiled a new strategy to increase production capacity and turning China into a manufacturing facility for the global market and export hub.


Based on the Scalable Product Architecture (SPA), the top-of-the-range S90 series cars will be made at the Daqing plant, Heilongjiang province, in northern China, and production of the new S90 premium saloon will be moved from Europe to China.


Volvo had also announced that the current and future 60 series will be built at their Chengdu plant, Szechuan province, in Western China, while the smaller 40 series based on the Compact Modular Architecture (CMA), will be manufactured at a plant that is currently being built in Luqiao, 350 km south of Shanghai.


“With three plants – and the designation of one car line for each plant – Volvo creates an efficient production structure ensuring future capacity for growth,” said Håkan Samuelsson, president and chief executive.


Owned by Zhejiang Geely Holdings but operated by Volvo Cars, the Luqiao plant will not only be making Volvo’s 40 series CMA-based cars, but also CMA-based cars for Lynk & CO, a new car brand recently launch last month.


As for the time being, Volvo operates two plants in Europe which are in Sweden and Belgium. The Gothenburg plant in Sweden will keep on producing 90 series and 60 series SPA cars, while the Ghent plant in Belgium will soon be a CMA-only production facility making new 40 series cars. A new plant is also being built in South Carolina, US, which will also make SPA-based cars for US and export market.


Volvo took the lid off their new strategy the same day they unveiled the new China-built version of their S90 saloon and a specially upgraded luxury model designated as the S90 Excellence, ahead of its public debut at the 2016 Guangzhou Motor Show. Both cars will be built at the Daqing plant and exported globally, demonstrating the high levels of quality that defines Volvo’s global manufacturing strategy.

 

Hussein Zain

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