Volvo starts building engine plant in north China

Volvo Car Corp. has begun construction of an engine plant in the north China city of Zhangjiakou, according to information the local government released on its Web site last week.In late June, Volvo CEO Stephen Jacoby attended a ceremony in Zhangjiakou to mark the start of construction of the plant's main factory building, according to Zhangjiakou's government.Construction of the plant is scheduled to be completed in 2014.Additional information about the factory has not been released.Volvo was acquired by Chinese automaker Zhejiang Geely Holding Group Co. in 2010. The engine plant in Zhangjiakou is part of an effort to build more production capacity in China.Volvo plans to sell up to 200,000 vehicles annually in China by 2015, up from 47,150 in 2011.To implement the plan, the Swedish car brand will build two assembly plants in China. One assembly plant will be built in the southwest China city of Chengdu, while the other will be constructed in the northeast city of Daqing.Aside from the engine plant in Zhangjiakou, Volvo also plans to build an engine plant and r&d center in Shanghai.Currently, only two Volvo models, the Volvo S40 and the stretched Volvo S80, are built under contract at the Chongqing plant of Changan Ford Mazda Automobile Co.

Volvo starts building engine plant in north China

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