Volvo to Hire 10,000 Staff by 2020, Focusing Expansion in China
Volvo plans to increase its global workforce to up to 35,000 by 2020, with the majority of new jobs created in China as part of a drive to boost sales and local production.
Volvo Cars will add up to 10,000 jobs by 2020, with most of the new roles based in China, as the Swedish brand targets a major increase in sales and local production under Chinese owner Geely. Chief executive Stefan Jacoby confirmed the recruitment drive, which will take Volvo’s global workforce from around 24,000 to between 33,000 and 35,000 within the decade.
The majority of new hires will be in China, reflecting Geely’s strategy to build Volvo’s presence in the world’s largest car market. In 2011, Volvo employed about 16,000 people in Sweden, 5,000 in Belgium, 1,000 in China and 2,000 across other regions. The company expects China to account for a quarter of its planned 800,000 annual sales by 2020, up from just over 31,000 sold there in 2010.
China to become Volvo’s largest growth market
Volvo’s expansion in China is anchored by new manufacturing capacity. The company will open a plant in Chengdu in 2013, with a planned annual capacity of 150,000 vehicles and 3,000 employees. Volvo is also seeking approval for a second Chinese factory, which could further increase local output and staffing. These investments are part of a broader push to localise production and respond to surging demand for premium vehicles in China.
The shift to China comes after Geely’s 2010 acquisition of Volvo from Ford. Geely committed to maintaining Volvo’s research, development and core production in Sweden for established markets, while using new investment to accelerate growth in China. The move puts Volvo in direct competition with other premium brands expanding their Chinese operations, including Audi, BMW and Mercedes-Benz.
Sales growth and local production
Volvo’s global sales stood at about 374,000 vehicles in 2010, with strong growth in both northern Europe and China. The company reported a 29% sales increase in northern Europe and a 36% jump in China that year. By 2011, Volvo aimed to raise sales to as many as 440,000 units, with order books reportedly full into the following spring. The new jobs are expected to support this volume increase and the localisation of production for the Chinese market.
- Volvo’s Chengdu plant (opening 2013): 150,000 vehicle capacity, 3,000 jobs.
- Second Chinese plant pending government approval.
- Continued R&D and core production in Sweden for traditional markets.
The company’s investment plan, announced in early 2011, included a global outlay of $10 to $11 billion over five years, aimed at expanding capacity and developing new models. Volvo’s China strategy mirrors similar moves by rivals, with premium manufacturers increasingly producing locally to meet demand and avoid import tariffs. For more on the broader trend, seeVolvos to Be Built in China.
What this means for Volvo’s global operations
For existing Volvo staff, the bulk of new hiring in China means limited direct impact on jobs in Sweden and Belgium, where the company has its main European plants. Geely’s commitment to retain R&D and main production for Western markets in Sweden has so far been upheld. The expansion is expected to strengthen Volvo’s global competitiveness and help the brand reach its ambitious sales targets by the end of the decade.
