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Geely-Volvo China HQ settles in Shanghai

Amanda Zheng From Gasgoo.com| August 20 , 2010 13:10 BJT

Shanghai August 20 (Gasgoo.com) Zhejiang Geely Holding Group Co., Ltd. has got approval from the National Development and Reform Commission (NDRC) to set up a production facility in Shanghai for Volvo cars, Media reported Friday.

The new facility covering an area of about 800,000 square meters will be built in the Jiading Industrial Zone with an annual capacity of 300,000 vehicles. Volvo's three-door, four-seat hatchback C30 and mid-sized five-door estate car V70 will be manufactured here beginning at the end of 2012.

Apart from the production base, Geely will also locate Volvo's China headquarters, research and development center as well sales and sourcing center in Jiading.

Geely completed its purchase of Ford Motor Co's Volvo unit with 1.6 billion in cash on August 2. With the deal down, guesses about where Volvo's China plant will be established has attracted lots of attention in the industry. Shanghai Jiading District, Chengdu, Daqing and several other cities were all considered to be the possible location.

At present, Jiading has already provided a 16,000-square meter workshop to Volvo for its temporary research and development center. By the end of this year, 200 to 300 engineers will work at the facility to develop cars for the Chinese market, China daily said.

Geely has now worked out a five-year plan for the development of the Volvo brand, under which Volvo China annual sales will reach 150,000 units by 2015.

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