Volvo and Polestar fire up in China

15 April 2019 | Automotive Manufacturing Solutions

China – Production of the Volvo XC40 has started at the Geely-owned plant in Luqiao – a district of Taizhou in Zhejiang Province, located on the East coast. The move reflects growing demand in the small SUV and Volvo’s desire to increase local production.

“Demand for the XC40 has exceeded our most optimistic expectations,” commented Håkan Samuelsson, president and chief executive for Volvo Cars. “Building the XC40 in Luqiao creates extra capacity, adds flexibility to our global manufacturing network and is a clear proofpoint of our strategy to ‘build where you sell’.”

The plant in Luqiao already builds the Lynk & Co 01 – an SUV made by the new marque which Volvo co-owns with Geely. It is also soon to be home of the new fully electric Polestar 2.

“Being able to produce Polestar 2 in the Luqiao plant in China shows the clear synergies of our ownership structure and gives us a great industrial advantage,” noted Thomas Ingenlath, CEO at Polestar. “With Geely and Volvo Cars as our owners, we are able to leverage their expertise in many different ways. Manufacturing is one of the most important areas, helping us accelerate our progress and entry into the market with the confidence that Polestar 2 production will begin as planned early next year.”

The Volvo XC40, Lynk & Co 01 and Polestar 2 will be built on the same line at the facility. This has been made possible due to the fact that the three models share the Compact Modular Architecture (CMA) – a platform co-developed by Volvo and Geely.

Volvo’s plant in Ghent, Belgium, also makes cars based on the CMA platform. However, its facilities in Torslanda, Sweden, Chengdu and Daqing, China and Ridgeville, the US, make cars based on its larger Scalable Product Architecture (SPA).

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