Geely's Volvo gets a Chinese parking place in Shanghai

09:20, August 20, 2010      

Email | Print | Subscribe | Comments | Forum 

Zhejiang Geely Holding Group Co Ltd has got the necessary approval to set up a production facility in Shanghai for Volvo cars, sources said on Thursday.

"Jiading will host the facility," said Jin Jianzhong, Party secretary of Jiading District in Northwest Shanghai, in a telephone interview with China Daily.

"We have reached an agreement with Geely on the matter and will provide a series of favorable policies for producing Volvo cars," said Yu Jianhua, deputy director of the Jiading Industrial Zone and Asset Management Committee.

However, both of the officials refused to disclose further details about the project, and said the local government and Geely will make a formal announcement in this regard soon.

A source familiar with the project said the National Development and Reform Commission has already cleared the plan.

Jiading District government said on its website that Geely will set up the new facility in the Jiading Industrial Zone with an annual capacity of 300,000 vehicles.

The plant will produce Volvo's three-door, four-seat hatchback C30 and mid-sized five-door estate car V70 in 2012.

The company will also locate Volvo's China headquarters, research and development center as well sales and sourcing center in Jiading. Work on the facilities is expected to begin in the first quarter of 2011 and is likely to be completed by the second half of 2012.

Jiading has already provided a 16,000-square meter workshop to Volvo for its temporary research and development center. By the end of this year, 200 to 300 engineers will work at the facility to develop cars for the Chinese market.

Analysts said Jiading, which is also home to Shanghai Volkswagen and several auto parts makers, will be an ideal location for Geely as it is China's automobile center and not located too far from Geely's headquarters in Hangzhou.

The automobile segment is the pillar industry in Jiading contributed nearly 38 percent or 18 billion yuan ($2.65 billion) to the district's industrial output in the first quarter.

This February, Geely's subsidiary Beijing Geely Wanyuan International Investment Co signed an agreement with Jiading government's Shanghai Jia'erwo Investment Co to establish Shanghai Geely Zhaoyuan International Investment Co for the planned Volvo project.

Earlier this month, Geely completed the acquisition of the Volvo car brand by paying $1.8 billion to Ford Motor Co, the biggest takeover by a Chinese automobile company overseas.

Source:China Daily


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Staff members watch a screen showing the blast-off of the Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module at Beijing Aerospace Control Center, Sept. 29, 2011. Commander-in-chief of China's manned space program Chang Wanquan announced Thursday night that the launch of Tiangong-1 space lab module was successful. (Xinhua/Wang Shen)
  • Chinese President Hu Jintao watches the launch of Tiangong-1 space lab module at Beijing Aerospace Control Center in Beijing, capital of China, Sept. 29, 2011. Other members of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, including Wu Bangguo, Jia Qinglin, Li Changchun, Xi Jinping, Li Keqiang and Zhou Yongkang, are also present. (Xinhua/Rao Aimin)
  • The graphics shows the launch procedures of the carrier rocket of Tiangong-1 space lab module, Long March-2FT1 on Sept. 29, 2011. (Xinhua/Lu Zhe)
  • Image taken from Beijing Aerospace Control Center shows a Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module blasting off from the launch pad at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 29, 2011. (Xinhua)
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
Hot Forum Discussion