Volvo to Build Plant in China

February 22nd, 2011
in econ_news

volvo Econintersect:  Last summer Geely Holding Group of China completed its acquisition Ford Motor Co.'s Volvo unit for $1.5 billion.  Now comes an announcement that the Chinese manufacturing base for Volvo will be  in southwest China's Chengdu City.  Shanghai and northeast China's Daqing City also had been vying for new Volvo factories.  Whether further manufacturing plans will be forthcoming is not known.  However,  Volvo plans a news conference to announce its strategy in China later this week in Beijing, the Chengdu Overseas Media Service, a local media group, reported, citing officials from the city's trade development zone.

Follow up:

The legendary Swedish automaker was China's biggest foreign auto acquisition and an unusually large deal for a private Chinese company.

Industry analysts say 13-year-old Geely, barely known abroad, will face a struggle in integrating the two corporate cultures and turning around Volvo Cars, a perennial money-loser in a country with strong labor unions.  The new plant in China will reportedly build compact and economy cars for the Chinese market.

Sources:  Shanghai Daily and The Christian Science Monitor    









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved