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Volvo China Factories contracted the Chinese way - without permission
29 November 2011
The construction of Volvo Cars' first car factory in China is in full swing. The foundation has also been added for a second factory - even though the permits from the authorities are not yet clear.

With Geely, ownership, Volvo Cars plans a major expansion in China. By 2015, sales are expected to increase to 200,000 cars, against 30,500 last year.

Back in the spring construction of the factory in Chengdu, 160 miles west of Shanghai began. Then nothing was said about the permits and the state. There has also been ground work for a factory in North China region of Daqing.

Volvo's China Chief, Freeman Shen, in an interview with Automotive News China, said that that the approval process took longer than expected. The company is still waiting for permission from both the regional and central authorities.

Volvo Cars' Corporate Communications official, Olle Axelson confirms the picture but says that it has initial reply that the application has been is considered sufficient enough to begin plant construction on the sites.

“We would not have embarked on this unless our China organization felt it was okay,” he says.

Volvo is planning for the inauguration of the Chengdu factory next year, probably before the summer. Serial production is delayed until 2013.  The plant in Chengdu will have a capacity of about 120 000 vehicles and plant in Daqing to build around 100,000 cars, according to Volvo officials. Volvo also plans for an engine factory that probably should be in the Beijing area.
By Scancomark.se Team

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