CHINA: Government approves Volvo car project
The Chinese Ministry of Industry and Information Technology has given approval for a passenger car project by the Zhejiang Geely Holding Group.
According to People Daily, Zhejiang Geely plans to invest around CNY4bn (US$630m) in the project to build Volvo passenger cars which is expected to become operational in 2013.
Zhejiang Geely will set up assembly lines and other related supporting facilities in Chengdu, Sichuan province and have an annual production capacity of 50,000 Volvo passenger cars, the report said.
The Ministry will conduct an inspection of the plant after its construction is completed and then allow the cars manufactured there to be sold in the market. The carmaker expects annual sales to reach around CNY22bn after the Chengdu plant is operational.