China – Government authorities have approved Volvo Cars’ bid to establish manufacturing plants in Daqing and Zhangjiakou meaning that Volvo Cars’ full Chinese industrial footprint (including Chengdu) has now been approved.
The assembly plant in Daqing is under construction and the first pre-series cars will be built in late 2013 for training purposes. The plant is forecast to be fully operational in 2014.
The engine plant in Zhangjiakou will become operational during the autumn of this year and will deliver engines to Volvo Cars’ manufacturing plant in Chengdu, where serial production will start in the fourth quarter of 2013.
Zhangjiakou will also supply the assembly plant in Daqing.
The plants in Daqing and Zhangjiakou will be operated in the form of two joint-venture companies, in which Volvo Cars initially will hold 30%. The remaining part will be held by companies within Geely Holding Group. The Chengdu plant will be operated under an extension of an already existing production license held by a Geely Holding company.
The company states that plants in China will be operated in full accordance with Volvo Cars’ manufacturing standards and procedures, equal to those of the company’s European plants.