Green light for Volvo to build two new plants in China

The auto maker Volvo, which is the Swedish subsidiary of Chinese-based Geely Group, has received permission to build a second and third plant in China.

During the autumn of this year an engine plant in the north Chinese city of Zhangjiakou will become operational, while an assembly plant in Northeast China’s Daging city will be fully operational in 2014, the company said in a statement.


Volvo already has a plant in the Southwest Chinese city of Chengdu. Volvo holds 30 percent of the companies’ joint venture whereas Geely Group holds the rest. In 2010 Geely bought Volvo. The Chinese company’s brands Geely, Gleagle, Emgrand and Englon, are virtually unknown in the West.

According to Swedish The Local, Volvo has made China a priority, as it struggles with a European car market in crisis and remains a marginal brand even in the United States, which is its biggest national market.


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