Volvo Builds New Engine Plant in Zhangjiakou, China image

Volvo has begun building a new engine plant in Zhangjiakou, north China, which will be completed in 2014.

In 2010 Volvo was acquired by Chinese automaker Zhejiang Geely Holding Group, and this new engine plant in Zhangjiakou is part of the company’s plan to boost capacity in China. Volvo aims at selling 200,000 units annually in this country by 2015, compared to 47,150 last year.

To complete the expansion plan, Volvo will build two assembly plants in China: one in the southwest China city of Chengdu and the other in the northeast city of Daqing. Besides the Zhangjiakou engine plant, the Swedish car brand also plans to build another engine plant and an R&D center in Shanghai. Until now only the Volvo S40 and the stretched Volvo S80 models will be manufactured under contract at the Chongqing plant of Changan Ford Mazda Automobile Co.

In the following 5 years Volvo will introduce 10 new models in China, from only six currently offered. But since some Volvo models will be retired in the following 5 years, the number of models offered would be less than 16.

“In the year 2017 we will offer 10 additional new models in the Chinese market,” Stefan Jacoby, Volvo chief executive, said at the Beijing auto show.