Volvo Might Miss Target of Beginning Production at the Chengdu Plant, China by June image

Volvo might not succeed in beginning production at its new Chengdu plant by June, according to a China Financial Report.

Back in 2010, when Geely purchased Volvo, the first move was to bring Volvo in China, in order to increase global sales. Its first plant to be opened in China, located in Chengdu, was named Zhong-Jia Automotive (Chengdu) Automotive Production.

Journalists who recently visited the plant discovered that it is not ready to begin production of the S60L, as the painting, welding and production areas were not even completed. The new plant is to begin production in June and have an annual capacity of 200,000 vehicles in the first phase as it is believed that full scale production has been pushed to October.

In March Volvo changed the incentive program for the Chinese dealers as it discovered big sales figures distortions. In 2012 Volvo’s sales in China dropped 11%, according to a press release, but now the automaker said that it discovered big sales figures distortions and that sales actually increased as 2011 sales data was overstated.

According to Chinese auto analysts sales figures are often distorted as they are based on dealer reports and not on actual vehicle registrations, a fact which affects other automakers too.