Volvo Cars, along with Geely, have announced their further expansion plans for China and other markets. The two automakers will be combining their efforts in increasing production in China and develop it as a major manufacturing and export hub for Volvo, Lynk & Co and Geely cars in the future.
Under the China Euro Vehicle Technology or CEVT program, compact cars from Volvo and Lynk & Co will be built in the The Luqiao plant. The plant will also be expanded for Geely cars that will also be using the Compact Modular Architecture from the Swedish manufacturer. The plant is expected to be up and running later this year. The new plant will also be Volvo's third assembly line in China with one in Daquing and the other in Chengdu. In addition, the Luqiao plant will cater for both Chinese and export markets.
"With three plants – and the designation of one car line for each plant – Volvo creates an efficient production structure ensuring future capacity for growth,” said Håkan Samuelsson, president and chief executive of Volvo Cars.
This is not the first time Volvo has built cars in China for the export market. Volvo claims that they are the first Western car maker to export a premium China-made car to the US back in 2015. The first Chinese-built Volvo to be exported to the West is the S60 Inscription. In addition to the S60 Inscription, Volvo is also set to build SPA (Scalable Product Architecture) cars, namely the S90 and V90, in China to focus on Asian markets.
Volvo currently operates two plants in Europe, in Sweden and Belgium. The Sweden plant in Gothenburg will continue to make 90 series and 60 series SPA cars while its plant in Ghent, Belgium, will soon be a CMA production hub for the 40 series compact cars.Volvo is also building a new plant in South Carolina in the US that will also make SPA-based vehicles for domestic US consumption and for export.