- Daqing to become one of China’s most advanced car plants
- Expansion will spur economic development in the Daqing region
- Commitment will further boost Volvo’s sales in China
Volvo Cars today underlined its long term commitment to China by significantly expanding its manufacturing facility in Daqing, China. 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), a flexible, scalable product architecture that covers most of Volvo’s future car models. This move will make Daqing one of the most advanced car making facilities in China.
Volvo Cars 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 world famous 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 per cent 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,” said 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 flavour of Scandinavian luxury,” said Mr Samuelsson.
The City of Daqing
Volvo Cars is working closely with the city of Daqing to help accelerate its economic development, in line with the national policy of “Reinvigorating the Northeast.” Daqing is seeking to reduce its traditional dependence upon natural resources and instead emerge as a sophisticated and world class centre for advanced manufacturing.
“We are delighted to be working with Volvo Cars to help Daqing evolve into a high-tech, high value-added, international city with a modern industrial base. It will also lay a solid foundation for the premium car industry in Northeast China and for Volvo’s rapid development in China,” said Han Xuejian, Party Secretary of Daqing.