Volvo closes in on China manufacturing plans image

Volvo’s plans of manufacturing vehicles in China may soon become reality, according to Chinese media.

The Nanfang Metropolis Daily wrote that Volvo’s approvals are going as planned. “Volvo’s applications for domestically producing vehicles are going smoothly. There is no need to worry”, Ning Shuyong, assistant head of public relations for Volvo China, said in the aforementioned newspaper.

Volvo plans to set up a new Shanghai research and development center and an engine plant in the northwestern Hebei city of Zhangjiakou and is now waiting for official approval from Chinese authorities. According to several sources, Shanghai will be the city selected by Volvo for domestic automobile production.

Before starting construction work, Volvo needs to go through the three major requirements for foreign manufacturers to produce vehicles in China: having a joint venture partner, announcing a suitable new energy vehicle development plan and possessing infrastructure to produce engines and other auto parts.

Volvo aims to make China the center of its global electric vehicle R&D program, with pure electric development to be specifically tailored to suit the needs of the Chinese market. Work on the Zhangjiakou factory, which is expected to have an annual production capacity of 600,000 engines, will be completed in 2014. The only thing left for Volvo now is to find a partner to set up a joint venture with.