Volvo Begins Manufacturing XC60 in China
China is Volvo Cars’ biggest market by far, with more than 65,827 models sold there in 2014 to date. Volvo’s most popular model in China happens to be the Volvo XC60, which accounts for more than 25,000 of all Volvo vehicles sold in China and nearly one-third of all Volvos sold around the world thus far in 2014. It seems only natural then that Volvo would start production of the XC60 in China at its Chengdu plant, which it did this week.
The XC60 will be the second model that Volvo produces in China, behind the S60L. Production on the long-wheelbase variant of the S60 began last November.
Chengdu, which is located in the Chengdu Economic and Technological Development Zone in central China, has an annual output of 120,000 cars. Production of the XC60 will also require the addition of 500 new manufacturing jobs and a new working time system.
“The start of XC60 production in Chengdu is the latest milestone in Volvo Cars’ transformation,” said Håkan Samuelsson, President and CEO of Volvo Cars. “It will be instrumental in boosting Volvo’s overall growth in what is now our largest market.”
Volvo currently operates more than 160 dealerships in China. It also has manufacturing facilities in Daqing, where the Volvo XC Classic is being built, and an engine plant in Zhangjiakou.
“Chinese customers do not have lower expectations than Europeans. They expect premium quality products,” said Lars Danielson, Senior Vice President Volvo Cars China Operations and CEO of Volvo Car China. “Customers also have plenty of choice in the highly competitive market in China. That is why we make sure to deliver high-quality Volvo cars out of Chengdu which are at least as good as the cars we build in our European plants.”
Volvo says it will begin exporting cars built at facilities in China to the United States sometime next year.