SHANGHAI–Volvo Cars said Wednesday it will produce its top-of-the-range S90 series and smaller 40-series cars in China, as it develops a global manufacturing and export hub there.
Volvo, which is owned by Chinese car maker Zhejiang Geely Holding Group Co., on Wednesday unveiled a China-built version of its new S90 sedan and a top-of-the-line, specially upgraded luxury model called the S90 Excellence.
In a news release, the Swedish car maker said the S90-series cars, which are aimed at taking on the likes of Daimler AG’s Mercedes-Benz E-Class, BMW AG’s 5-series and Audi AG’s A6, will be built at its plant in Daqing in northern China, and exported globally. It will also continue to make the car in Sweden.
“China will play an increasingly important part in our global manufacturing ambitions. Our factories here will deliver world-class products for export across the globe in coming years, contributing to our objective of selling up to 800,000 cars a year by 2020,” said Håkan Samuelsson, the president and chief executive of Volvo Car Group, in the news release.
Volvo said it will also produce its new range of smaller S40-series cars in a plant owned by its parent Geely in a town 350 kilometers south of Shanghai. The Luqiao plant, run by Volvo, will also produce Geely’s Lynk & Co. brand cars.
Geely launched the Lynk brand in October in Berlin, with an aim to compete against global mass-market nameplates such as Volkswagen, Chevy and Ford. The Lynk cars and Volvo’s S40 vehicles will share common design, basic engineering and major components as they are built on the same platform jointly developed by the two companies.
Currently, Volvo builds its midsize 60-series cars in the southwest Chinese city of Chengdu. The China-made S60 is Volvo’s first model that is exported to the U.S.