Volvo vehicles to be made in China

Two models under development at carmaker's new facility in Shanghai

GUANGZHOU - The Swedish premium vehicle brand Volvo AB, purchased by Chinese automaker Zhejiang Geely Holding Group Co Ltd last year, will make China one of its global bases as it prepares for local production of the first model in the country in 2013.

"The first locally produced model, a medium-sized sedan, will be launched in 2013, followed by a small sedan in 2014," said Shen Hui, senior vice-president of Volvo and chairman of Volvo Cars China Operations.

The two models, tailored to grab volume sales in China, are under development, led by Volvo's new research and development center in Jiading district, Shanghai.

According to Shen, the new cars will be launched in China and then exported.

Shen also said that "the launch speed of locally produced models will accelerate in the future".

He added: "Local production is crucial for Volvo to become well-established in China our home country outside Sweden. We see huge potential in China's second- and third-tier cities."

However, Shen declined to disclose the production site, as Volvo is waiting for government approval to build two plants, one in Chengdu, Sichuan province, and one in Daqing, Heilongjiang province.