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Volvo Cars makes new car brand in ChinaWednesday, 07 March 2012
Volvo and Geely have begun to develop an entirely new brand of cars designed for the Chinese market.
According to Swedish business daily, Dagens Industri the brand has yet to be named, but the first car that is planned is based on the outgoing XC90 model.
The new make of car is a requirement for Volvo Cars if it will have to start car production in China. This falls within two conditions in all western brands that want to have a factory in the country: development of an electric car and a new subsidiary label.
"I see it not as an obstacle because in practice we have a partnership with ourselves. We are in the same boat and rowing in the same direction. There is a big difference from other brands from the West to get an independent Chinese partner, "says Volvo Cars 's CEO Stefan Jacoby to the paper.
The paper also reports that development of both the brand as well as the first car has already begun. Back to the time when it was rumoured that Geely wanted to buy Volvo, indications had started that the XC90 would be manufactured in China. It now seems a reality.
Stefan Jacoby also confirms the electric car idea. "We discuss various aid projects in the electrification with Chinese authorities, "he says, to Dagens Industri.
By Scancomark.se Team
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