Volvo to launch 10 new models in China by 2020
The new models will include high-end luxury vehicles.
Volvo hopes to sell about 800,000 cars a year in 2020. That ambitious figure is approximately twice what the Chinese-owned automaker sold in 2011.
To achieve that goal, parent company Geely says that it will work hard to make China "a second home" for Volvo. This process will be accelerated when the Swedish automaker obtains the Chinese government's approval to build its first two assembly plants in the country.
"We are going to make huge investments into development and facility construction in China," said Geely Chairman Li Shufu in an interview with Bloomberg. "I believe Volvo will meet its growth target in the world as well as in China."
A big part of the company's expansion plan involves launching no less than ten new models in China by 2020. These will include high-end luxury models that will eventually make their way to many markets all around the world, including the United States.
If everything goes as planned, Volvo's lineup should consist of about 16 models in 2020. This marks a noticeable increase over the six that it currently sells in China.
While the future looks bright for Volvo, sister brand Geely is struggling to stay afloat in the ever-crowded Chinese market.
"What I can say is we need to work hard to keep Geely from dying," said Li Shufu.
Many analysts suspect that part of why Geely is investing so much into Volvo is to later borrow technology from its parts bin. This will cut costs all across the board, and it will give Geely a desperately-needed boost in its home market.
This doesn't mean that a Geely-badged Volvo is on its way; the Chinese company plans on keeping its two brands separate.
"We want to have advanced technology from Volvo to improve Geely cars, but we realize we need to keep Geely cars positioned as cars for the masses," said Li Shufu.