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Volvo expands Daqing manufacturing operation

Volvo Cars has underlined its long-term commitment to China by significantly expanding its manufacturing facility in Daqing. The company will use its Daqing plant to make the most innovative vehicles in its product range, which are based on its Scalable Product Architecture (SPA). This move will make Daqing one of the most advanced car manufacturing facilities in China.

Volvo has an existing manufacturing facility in Daqing, which was founded in September 2013. Its first product, the XC Classic, is the latest version of Volvo’s XC90 SUV, and was launched in China in September 2014.

The existing Daqing plant has around 700 employees and an initial capacity of 80,000 vehicles. The first SPA Volvo to be made in Daqing will be an all-new premium Sedan.

Volvo Cars' decision to significantly expand production in Daqing highlights its growing commitment in China. The Swedish company is majority owned by Zhejiang Geely Holding, a Chinese company, but also enjoys a close and developing relationship with the Daqing city government, which owns 37% of Volvo Cars.

Volvo Cars and the city of Daqing are working together to help spur economic growth and development in the city and surrounding region, driven by Volvo Cars' growing presence in the fast growing Chinese car market.

Volvo Cars expects sales in China to surpass 80,000 this calendar year, making China Volvo’s largest global market. It has a long-term goal of selling 200,000 cars a year in the country.

“Daqing will become an integral part of our global industrial footprint,” says Håkan Samuelsson, Volvo Cars’ president and chief executive. ”We are pleased to announce that we are going to introduce SPA and a new sedan here. We are fully committed to the growth of our business in China, our second home market.”

Cars made in the Daqing plant will be of global standards. The Daqing plant will fully adhere to Volvo’s global Volvo Car Manufacturing System (VCMS), and utilize global technology, global sourcing and provide global quality.

“Using precise, standardized production methods and world-class premium automotive technology, Daqing will provide consumers with safe, healthy, environmentally-friendly and tasteful Volvo cars with a flavor of Scandinavian luxury,” adds Samuelsson.

12 November 2014


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