The Swedish automaker is directing its attention towards China, the world’s largest automotive market and home of its current owner – Zhejiang Geely Holding Group Co.
With the help of its owner, Volvo plans to make China a home base, making the Asian country one of its vital export hubs, as the automaker moves to exceed its internal forecasted sales plan for 2014, according to a senior Volvo official.
The Swedish premium brand is actually doing so well this year that executives now forecast the initial sales target would get bitten by at least 13%, with Geely’s strategy for its European subsidiary now closely monitored by other Chinese automakers – which have global ambitions of their own.
The high ranking official talked to Reuters under condition of anonymity, stating the company’s plans for China are not yet of public knowledge. He added that Volvo intends to start the export of Chinese built cars as early as the end of 2015, with the models going to places like the United States or Russia.
According to the plans, the company would ship out the (until then) China only long-wheel-based version of the S60 sedan – the S60L (around 10,000 units per year) – to the US and the XC90 SUV to Russia.