Volvo's new factories to gain approval soon, manufacturer says

Gasgoo.com (Shanghai September 5) - Shen Hui, senior vice president and board chairman for Volvo Cars' China department, accepted an interview with Beijing Times where he predicted that the manufacturer's new factory projects in Chengdu and Daqing, Heilongjiang will gain government approval within two to three months. Mr. Shen also commented on upcoming projects for domestically developed vehicles. The following is an excerpt of the interview:

Beijing News: Is Volvo classified as a foreign company or a Chinese one at present? This is a critical point for the location of construction projects.

Shen Hui: We are currently discussing [this question] with the government. Government policies passed earlier have not covered this sort of question. We have prepared several cases for the locations of factories, [which we] predict will be approved within two to three months. The country will approve our merger, acquisition and site locations without question. This of course has to be done according to a process. The government is very supportive, directing us on the proper methods to take in order to gain approval [for the project.]

Beijing News: Is there a timetable for your future plans and production amounts?

Mr. Shen: Our first phase [plan] is set at 120,000 vehicles. As to what time production will begin, that answer lies with the government.

Beijing News: What is the Shanghai R&D Center exactly? Will it be responsible for researching and developing for products in future Volvo brands?

Mr. Shen: This R&D center has two key responsibilities. The first is to manage localization for the Chinese market. The second is undertaking [research and development] for global operations. For example, development of programs such as low-emission engines will be done in China.

When looking at the employees we have recruited [here], it is clear that there is a clear difference between the companies we have worked at. No other company is willing to give such a large chunk of its technology operations to a Chinese partner, or will not do so without charging them first. However, we are [working for a] common interest…, we are one enterprise. Everyone is working for the development of Volvo, therefore if the Chinese market requires certain technology, we will supply.

Beijing News: There have been reports that the Shanghai R&D Center is currently researching two new cars, is this true?

Mr. Shen: In 2013 and 2014 we will put out two new models, whose research and development work has already been taken up by the Shanghai R&D Center. We have over 100 engineers [there], with 40 to 50 among them from Europe.