Volvo has no plans to produce low-cost cars for the Chinese market, CEO says

Vienna January 17 (Reuters) Volvo Cars, owned by Chinese group Geely Automobile, has no plans to bring out a low-cost model specifically for the Chinese market, CEO Stefan Jacoby told an Austrian newspaper.

"We are a global premium seller and we design and build our products for a global customer base," he said.

"That of course does not rule out specific models for specific markets. Generally European customers want more compact cars while the Chinese and American customers want bigger models."

Volvo is expected to see further growth in 2011.

"Our new Modus (model) means we are being offensive instead of defensive," he told the Salzburger Nachtrichten's Monday edition, when asked about his expectations for 2011.

Last year the company made a profit for the first time since 2005. Asked whether the Sweden-based carmaker in 2011 would sell more than the 373,500 autos last year, he said: "At least one more, and if it is an emergency I will buy one myself."

Jacoby, a former North American executive of German carmaker Volkswagen AG, added that Volvo's Chinese owners have fostered "professional and deep" cooperation and that their involvement would strengthen the Volvo brand.

Geely's purchase of Ford Motor Co's Volvo unit last year marked China's biggest acquisition of a foreign car maker, reflecting the nation's rapid rise in the auto world.