Geely to build large Volvo factory in China
Published: 20 Aug 10 16:12 CET | Print version
Online: http://www.thelocal.se/28492/20100820/
The official website of the district of Jiading in Shanghai has announced that Volvo has decided to set up its Chinese headquarters and factory in the municipality.
- Saab and Volvo speed up production (13 Aug 10)
- China's Geely completes Volvo purchase (2 Aug 10)
- Geely head to lead Volvo Cars (16 Jul 10)
"First, Volvo management will say what it wants and then it is up to the board," said Ning Shuyong, who has been a spokesperson for Volvo at Geely since July 1st. "There is still no decision on whether plant will be located in Jiading."
Ning is also the assistant of Li Shufu, the chairman of Volvo Car and Geely.
"I cannot say anything about the timetable before the factory is established," Ning told news agency TT.
He also did not confirm details of how large a future Volvo factory in China would be or what models would be manufactured there. Volvo emphasised that nothing is clear.
"The decision will be made here and by the board," said Volvo's information director Olle Axelson. "It will probably be in the autumn."
Volvo's new CEO Stefan Jacoby, who started in his new position on Monday, needs more time to determine the best location for a Chinese establishment, according to Axelson.
"He does not shoot from the hip and will not decide such a thing so quickly," said Axelson. "We are not ready to look at all parameters. Jiading is a good option, but it is a complex issue."
According to reports in China's state-run People's Daily and Oriental Morning Post, the factory will cover 800,000 square metres and essentially build the C30 and V70 series of vehicles.
Construction is expected to be completed in the second half of 2012. The capacity at the new factory in Jiading is slightly larger than Volvo's "home factory" in Torslanda outside of Gothenburg in western Sweden.
In the last two years, Volvo has already built 300,000 cars in China, according to reports. The news about the construction of the new plant in China comes only two weeks after Ford's settlement with Geely was totally approved.
Previous reports on Volvo's plans in China had said that it would sell 150,000 cars a year by 2015, half the capacity of what the new plant is capable. Volvo sold 15,497 cars in the country in the first half of this year, up 88 percent from the same period in 2009.
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We are troublesome that way.
Volvo Cars sales during 2009 (2008) by market:
1. United States 61,426 (73,078)
2. Sweden 41,826 (47,775)
3. United Kingdom 34,371 (33,341)
4. Germany 25,221 (27,053)
5. China 22,405 (12,640)
6. Italy 15,896 (16,653)
7. Netherlands 14,035 (16,742)
8. Belgium 13,223 (12,872)
9. France 11,596 (11,745)
10. Spain 8,306 (9,876)
Others: 86,503 (112,522)
Source: http://www.volvocars.com/intl/top/about/corporate/volvo-sustainability/reports/Documents/Volvo_PV_Foretagsrapport_09_10_ENG.pdf
I mean all current Volvo and SAAB owners will defect to VWs, Audis, BMWs, Opels, and Mercs.
Guess who is in a better position to buy a car. China is a race to the bottom .
China just became tthe second biggest economy in the world, pushing Japan into third place. Not so long ago China became the worlds biggest exporter, putting Germany into second place.
Witin 10 to 14 years depending on which estimate you follow, China's economy will surpass that of the USA. The most pessimistic forecast for that recently is only 16 years. The recent surpasssing of Japan has made a lot of people sit up and take notice instead of recycling old out of date figures.
There is a very rapidly growing number of Chinese who are becoming rich and have a lot of disposable income. China is no longer the backward third world country it was 30 years ago. China is a growing economic power.
China has lifted more people out of poverty in the last decade than every other country on the planet combined. Compare that with the USA which has created more poverty.
Growth in sales of European cars in China is in double figures every year. The high end car market is definately starting to bloom, as you would notice if you ever visit China. There is now a lot of lambourgini's and ferrari's. You will also notice Humvee's, BMW's, SAAB's and Volvo's.
Only 20 years ago in Ireland, most of us would have happily settled for about $600 £400 €500, per month. Now anyone offering less than €2000 would be told what to go do with themselves. In Ireland 20 years ago I remember the same commentators that now claim China will take decades to catch up, claiming that Ireland will have a low wage economy for at least 50 years. They were proven wrong in five years and will be again.
Two years ago I only owned 4 personal cars, last year I bought three more without selling the first four. Had I bought one more car I WOULD HAVE DOUBLED THE NUMBER OF CARS I OWNED. WOW.
Now there is a certain American named Donald Trump, he probably also bought a few Autos, but I bet he didn't double the number he bought.
So using that logic I'm doing a lotbetter than the Donald!! But hold on, if I continue to double the number of cars I buy it eats up a bigger and bigger part of my personal wealth and that isn't available for investment.
So if Donald continues to buy at even 2% he will probably stay way ahead of me, without effecting his original personal wealth.
Wihat about China??? Are Chinese companies pumping out large bundles of money in investor dividends??? Are they creating personal wealth? Relative to a few years ago, yes. In comparison to the US, hardly.
As to the US creating poverty for their people, this is the most succesful business model in history. I KNOW OF NO ETHNIC GROUP IN THE WORLD THAT HAS COME TO AMERICA THAT IS NOT MORE SUCESSFUL THAN THE PEOPLE THEY LEFT BEHIND IN THE OLD COUNTRY. Do people fail in the US? YES, there are a lot of people, who are full of bad ideas, bad work ethics, etc. But the US system is more forgiving and easier to set up the new business and try again than any place in the world. That's why BMW and Mercedes, Hyundia, Toyota and Nissan have all increased the numbers of factories here.
The simple truth is that China in effect owns the US national debt.
The US like a few economies has been spedning more than it earns for a very long time.
If China sold the dollars it physically has now the US would be bust.
In just a few short years China economy will dwarf the US, the only thing stopping it at the minute is that its own internal market is not growing fast enough when it does the rest of the world will have a problem.
The real problem is as the Chinese economy grows and inflation in China ramps up us in the west will have to pay a lot more for the cheap(now) products we buy.
Your comments are way off the page.
The USA is a bankrupt nation and is in the toilet, one of its only saving graces is oil is sold in dollars:- its one of the reasons they invaded IRAQ as IRAQ had switched to buying in EURO. Other than G Bush is a m***n, same as Tony B LIAR
In a few years China may not need us as much as we need them !!!!!!!!!
Oh, and maybe Bill Clinton and George Bush, and their like-minded NWO elitists in Europe, should come and explain to Swedish workers why making Volvo in China will benefit the working-class Swede in the future.
I wrestled with this very issue when buying the new Volvo however Volvo offered incentives and options that the other brands did not.
The real issue for me will be whether or not Geely can make a success of Volvo as a world brand. This will determine it's survival. Ford could not; but for reasons of greed and a poor business model. No doubt there will be a lot of Volvos sold in China but with labor costs in Sweden it is doubtful they will be produced there. Sad; but simply business.
90k miles ater it still seems well built- but I don't know how many Swedes were displaced by those pesky Belgians.
The brand will go nowhere but down! And the defectors will continue to skyrocket.
i am not gonna be surprised to see that title. production cost is way too high in Sweden, hardly can not understand you can really produce anything in this country except of using fully automation.
i guess the problem will be if Geely can keep a consistency on the quality of Volvo cars, no matter where that is produced. i am not scared about the quality of Chinese made products, giving a example on the iPhone, every single iPhone is made in China.
Think you have the wrong car company there.
What a way to win over your new team.
Just hope one of us gets a chance to ask him that question in a townhall meeting.....
u r the only one that noticed ;-))
Tho' Göteborg - Trollhättan not much difference they're both at the rear end of Sweden
Say goodbye the Ghent next!
the rest of the world needs to look on quickly and default before they go down the gurglar (drain). The whole world has to go screw you we have had enough!
The chinese are the only ones who are clever enough to stick it to the rest of us! they are our slaves for the next year (or so) then they will own us (probably already do) from then on!
they have USA by the balls and have spent trillions of banksters capital to build whole cities (unoccupied and beautiful) so who is gonna invade china when they decide they are not gonna pay up! USA can't and Russia is a friend!
china has grown too big now, we just better remain friends