Volvo making progress on plans to produce vehicles in China

Gasgoo.com (Shanghai August 29) - Volvo's plans to manufacture vehicles may soon be coming to fruition, the Nanfang Metropolis Daily reported today. "Volvo's applications for domestically producing vehicles are going smoothly," Ning Shuyong, assistant head of public relations for Volvo China, said, adding that, "there is no need to worry." Following the revealing of plans to establish a new Shanghai research and development center and engine factory in the northwestern Hebei city of Zhangjiakou, official approval to manufacture vehicles in the country was the next logical step to take for Volvo. Several sources point to Shanghai as being the city Volvo will select for domestic automobile production.

Having a joint venture partner, announcing a suitable new energy vehicle development plan and possessing infrastructure to produce engines and other auto parts are the three major requirements for foreign manufacturers to produce vehicles in China.

Volvo China Board Chairman and Senior Vice President Shen Hui has already announced the manufacturer's intent to make China the center of its global electric vehicle R&D program. Mr. Shen also noted that Volvo's pure electric development will be specifically tailored to suit the needs of the Chinese market. Meanwhile, work on the Zhangjiakou factory, which is expected to boast an annual production capacity of 600,000 engines, will be completed in 2014. The only thing left for Volvo is to find a partner to work with.

When asked about the issue, Mr. Ning's response was very cautious. "Under the guidance of the Chinese government, we are looking for a suitable partner to work with," he said, refusing to reveal any other details.