GOTHENBURG Dec 3 Chinese-owned Volvo Car
Corporation is committed to developing its next generation of
cars in Sweden, with nearly half of its planned $11 billion in
investments expected to wind up in Volvo's home country, the
company said on Monday.
Bought by Geely from Ford Motor in 2010, Volvo aims to
boost sales by 2020 to 800,000 vehicles from just over 400,000
currently, betting on rapid growth in demand in China.
Volvo said in a statement on Monday it would make a
multi-billion-dollar investment in Sweden to develop a new line
of cars, including a four-cylinder, fuel-efficient, family
"This is testament to our determination to strengthen the
firm's position as a Swedish car brand with a unique attraction
on a global market," said Hakan Samuelsson, Volvo Car's chief
About a third of the investment in Sweden would be made to
expand and upgrade Swedish production, it said.
It expects to launch the first car model based on the new
architecture, the Volvo XC90, at the end of 2014.
The global downturn has meant it has not been plain sailing
for Geely as it tries to turn the Volvo business around, the
Swedish company having struggled to be consistently profitable
over the last decade.
Volvo's sales fell 5.9 percent in January through October
and the company has had to cut production both in Sweden and in
Belgium, where it also has a plant, to adjust to flagging
(Reporting by Patrick Lannin; Editing by Greg Mahlich)