Volvo’s corporate overlords Geely will open a second plant in China, citing that Chinese production is a key factor in the Swedish company’s growth.
The current Chinese plant is located in Daqing, an oil-rich region in northeast China that provided Geely with a majority of the $2.7 billion needed to buy Volvo from Ford. Now, Geely is seeking to open a plant in Chengdu, in the center of China—a decision that has been approved by the Chinese government.
Volvo has a research and development center in Shanghai, rounding out its Chinese connections. In addition, Geely chairman Li Shufu suggests a closer connection to Sweden: “Daqing and Gothenburg are located more or less at the same latitude, so they share the same weather and temperatures, and air quality is also very good in Daqing,” he said. “Swedish people would very much like this place.”
[Source: Left Lane News]