Volvo plans to make itself better known in China with new production sites in Chengdu, Sichuan and Daqing, Heilongjiang, which will increase the number of Chinese built Volvos.
The company CEO Stefan Jacoby declared that in the future the ratio of Chinese made auto parts in the manufacturer’s vehicles will be 90% and that the company still aims at obtaining 20% of the market share in the luxury segment.
Volvo plans to increase its sales with the new compact V40 powered by a turbocharged engine mated to a six-speed transmission and all wheel drive system, and also featuring unprecedented pedestrian airbag and traffic signal recognition technologies. The model’s debut is expected in April at the Beijing International Automotive Exhibition and may be sold in China as early as next year. The company also counts on two other models: the XC60 Plug-In Hybrid and the C30 pure electric car, the last one currently making test runs in Shanghai Jiading district, showing the importance of the Chinese market to Volvo.
Although the cars will be produced in China they will preserve their Western style, but at the same time will adopt the Chinese characteristics. The manufacturer signed a technology transfer agreement with Geely Automobile last week, which will help spread the scope of Volvo technology.