Volvo Car Corporation, a former unit of US auto giant Ford Motor Company, acquired last year by Chinese automaker Zhejiang Geely Holding Company (Geely) said that it plans to invest around $10-11 billion over the next five years to meet the rising global demand for premium passenger cars.
As part of its China strategy, Volvo Car's board has decided to invest in a new plant in the city of Chengdu, in southwest China and also looking for opportunities for setting up a plant in Daqing in the northeast of the country, the company said in a statement.
"We regard the Chinese market as the second home market for Volvo Car Corporation and a very important part of the plan to build a successful future for the company," said Stefan Jacoby, president and CEO of the company.
"Our aim is to reach a sales volume of about 200,000 cars in the Chinese market by 2015," Jacoby said.
The company also plans to strengthen its sales and marketing activities, including expanding the dealership to over 220 by 2015 from the current 106.
Volvo Car's chairman Li Shufu said: ''We have developed a solid plan for future growth in the strategically important Chinese market. I am also happy to see that Volvo sales show a strong start in 2011 both in Europe and on the US market."