Volvo has just unveiled a new global manufacturing strategy. China will become a global manufacturing hub to increase production capacity and meet growing demand.
Volvo will now make its premium S90 series cars at its plant in Daqing, Heilongjiang province in northern China. Volvo also announced that existing and future 60 series medium-sized cars will be built at its plant in Chengdu, Szechuan province in western China, while its planned 40 series smaller cars will be made at a plant that is currently being built in Lugiao, about 220 miles south of Shanghai. Volvo’s production expansion into China marks a significant advancement for its global industrial footprint. The new S90 will be the most premium car ever made in China, according to Volvo.
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“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, Volvo president and chief executive.
Volvo currently operates two plants in Europe. One is in Gothenburg, Sweden, and one is in Ghent, Belgium. The Gothenburg plant will continue to make 90 series and 60 series cars while the Ghent plant will, in the future, only make new 40 series cars. Volvo is also building a new plant in South Carolina that will make vehicles for domestic U.S. consumption and also for export.
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