SHANGHAI -- Volvo Car Corp. plans to build a new assembly plant and a new r&d center in the Shanghai suburb of Jiading, the Jiading government Web site has announced.
Zhejiang Geely Holding Group Co., which bought the Swedish car brand from Ford Motor Co. this month, is seeking central government approval of the projects, according to the Jiading government.
The new plant is expected to start production in 2012 with an annual capacity of 300,000 vehicles. It will build the Volvo C30 entry-premium coupe and the Volvo V70 medium-premium station wagon.
Construction of the r&d center will begin next March or April. It should be open for business in the second half of 2012, according to the Jiading government. It will have a total floor area of 100,000 square meters.
A museum on the site will showcase Volvo Car Corp.'s history.
After the local government disclosed the plant project, Volvo issued a statement Aug. 20 saying that it has not yet decided upon a plant location.
Currently, the Volvo S40 and a long-wheelbase version of the Volvo S80 are built in Chongqing. That plant is run by a joint venture of Changan Automobile Co., Ford Motor Co. and Mazda Motor Corp. Volvo sold 191,832 cars in the first half, a 20 percent increase from a year earlier. In China, Volvo's fourth-biggest market, deliveries surged 88 percent to 15,497 cars in the period, helped by last year's introduction of the S80L