Volvo Receives Government Approval to Manufacture in China

The Chinese government approves Volvo’s establishment of vehicle assembly plants in Daqing and Zhangjiakou, China.

The factory in Daqing, in western Heilongjiang province, is under construction and early prototypes are to be built there later this year for training purposes. The facility is scheduled to be fully operational in 2014.

The engine plant in Zhangjiakou, in northwestern Hebei province, goes online this fall and will begin delivering to an already-approved third factory in Chengdu, where serial output is scheduled to start in the fourth quarter. Zhangjiakou also will supply engines to the Daqing facility.

Daqing and Zhangjiakou will be operated as a joint venture between Sweden-based Volvo and its Chinese parent-company Zhejiang Geely.

The Chengdu plant, located in the capital of Sichuan province, will be run under an extension of an existing production license held by Zhejiang Geely that was granted in June.

Volvo has not announced what vehicles it will build in China, but media reports indicate one model likely will be a long-wheelbase version of the S60 sedan.