Volvo Cars CEO: We expect 5 percent growth in 2014 image

Volvo Car Corp.’s Chief Executive Håkan Samuelsson, during a press conference in Sweden told reporters that new car sales are expected to grow by 5 percent this year, thanks to new products and continued growth in China and the United States.

Last year Volvo Cars sold 427,840 new vehicles worldwide – up 1.4 percent compared to 2012, but full-year profit for 2013 rose to $301.9 million – up from $66 million in 2012.

Looking ahead, sales in 2014 will continue to grow, driven by steady growth in key markets and an improved product offer, the official press release says.

Volvo, one of the largest carmaker in Sweeden, bets on China where its car sales rose 46 percent last year.

The company already received Chinese government approval to construct two plants in the country – an assembly plant in Daqing (northeast China), where the company would build 80,000 vehicles a year; and an engine plant in Zhangjiakou near Beijing where Volvo will produce about 300,000 engines a year.

The Daqing plant is expected to be fully operational in June, while the Daqing plant will start engine production at the end of 2015.

Ford Motor Corp. sold Volvo to China’s Geely group in 2010 for $1.8 billion.