Volvo has no plans to produce models for the Chinese market.

Volvo has no plans to produce models for the Chinese market.

Volvo Cars says it plans to hire a Chinese team of designers in order to understand the demands of the Chinese consumer better. The company also unveiled plans for a co-operation committee with owner Geely Automobile. 

Comments by the brand's chief of design Peter Horbury suggested that while Volvo has no plans to produce China-specific models it will focus on features for Chinese customers.

He hinted the design team could be in place next year.

Geely Automobile also announced plans for a 'Volvo-Geely Dialogue and Cooperation Committee (DCC).' The company said the committee has been set up to steer the future communication and joint efforts of both parties.

Stefan Jacoby, president and CEO of Volvo Car Corporation and Gui Sheng Yue, CEO and executive director of Geely Automobile Holdings, signed the agreement and started the forum today.

"The DCC is a forum between both parties to exchange ideas and information relating to the manufacturing and supply of automotive products, the development of new products and related technologies, marketing and distribution of these products to potential customers and talent training and cultivation," a statement said.

The statement added no definite terms on the actual scope of cooperation have been concluded at present.

The DCC consists of nine members, of which both parties will appoint four each. The meetings will be chaired by Li Shufu, who will be an independent member. It will meet twice a year and meeting venues will alternate between Sweden and China.

Both parties may from time to time by mutual agreement expand the scope from a discussion to cooperation in an agreed and specific area. Detailed terms of any such cooperation will then be set out in a definite agreement between two parties.

Chairman of Geely Automobile Li Shufu said: "This forum echoes our strategy of Geely is Geely, Volvo is Volvo."

Jacoby said: "We are happy on the formulation of a committee with Geely. Surely such a mechanism will help us better envision our future in China and seize the momentum of fast expansion here.

"We want to enhance the competiveness of our brand and market share here so as to grow China into the second home market for Volvo."

Gui Sheng Yue said: "Though the geographical locations of the two companies are far from each other, the candid dialogue and sincere cooperation between us will be close and constant. I bet that DCC will set an example of bilateral cooperation in the auto industry."

As reported on just-auto last month, a new Volvo plant will probably be established in the southwest China city of Chengdu and is expected to be approved by December.

Volvo was bought by Geely Holdings Group earlier this year for US$1.2bn and Geely said that it wants to double Volvo's global capacity.

Geely has a nearly-completed SUV plant in Chengdu which could be used to build Volvo crossover vehicles. The site's current production line is capable of building 150,000 vehicles a year and has room to add a second assembly line.

Auto market intelligence
from just-auto

• Auto component fitment forecasts
• OEM & tier 1 profiles & factory finder
• Analysis of 30+ auto technologies & more