2014 Volvo S60L production in China
Volvo is rapidly expanding its operations in China, including establishing new manufacturing facilities
and co-developing vehicle platforms and new models
with Chinese parent company Geely. Simply put, Volvo plans to build and develop more cars in China.
Currently, Volvo’s Chinese-built cars, the S60 and a long-wheelbase variant, are only sold in China but we may see exports eventually start. Previous Volvo CEO Stefan Jacoby said in 2011 that the automaker was considering building cars in China for export
, and now the Swedish automaker’s new CEO Hakan Samuelsson is reported to have said that Volvos built in China could be exported to the U.S. "fairly quickly" but wouldn’t give a firm date.
According to Automotive News
(subscription required), Samuelsson sees U.S. customers as already accustomed to sophisticated products being imported from China.
The payoff for Volvo, if it manages to convince its customers that its cars built in China are just as good as those currently built in Europe, is vast. Not only will it save on production costs, but it will also help buffer against exchange rate fluctuations.
The model with the greatest potential of being sourced from China is a next-generation V40 compact, which is currently in development and will be based on platform called the Compact Modular Architecture, Volvo's new modular platform for everything smaller than its S60. The current V40
is based on an aging platform shared with the discontinued C30._______________________________________Follow Motor Authority on Facebook, Twitter, and Google+.