Volvo on Tuesday opened a new Chinese headquarters in Shanghai as it aims to expand market share following local automaking group Geely’s purchase of the carmaker last year.
Volvo president and chief executive Stefan Jacoby said the company’s Chinese presence had gone from being a sales arm to a full-fledged research and manufacturing operation within months, news agency AFP reported.
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“I am glad to see the China operations team has been set up and has made a huge progress over the last few months, expanding our business presence in China,” Jacoby said in a statement.
The new headquarters on Shanghai’s northern outskirts will also include a technology development centre, the company said. Volvo officials declined to say how much was being spent on the facilities.
Geely aims to sell 800,000 Volvos in 2020, including 300,000 in China.
In 2010, Volvo sold 373,525 vehicles with sales rising 29% in northern Europe and 36% in China.
Sales dropped 12% in the United States to 53,952 vehicles, although it remained Volvo’s top market.
“China is the world’s largest auto market. To capture the business growth and build Volvo Cars (into) an admired brand in China, (the company) has been strengthening the leadership team in China,” senior vice president and Volvo China chairman Freeman Shen said.
“Our goal is to build Volvo cars one of the most admired luxury car brands,” Shen added.
