Volvo takes production of the XC40 Recharge & Polestar 2 in its own hand

Volvo takes production of the XC40 Recharge & Polestar 2 in its own hand-hand

With its parent company Geely Holding, the Volvo Car Group made an agreement on the full acquisition of the Luqiao plant in China, which integrates the plant into its own assets of the company. By taking over the factory, Volvo will fully available the production capacity of the factory. This promises the manufacturer to strengthen their own position in China.

In addition, the transfer creates a clearer owner structure both within the Volvo Car Group and the Geely Holding. The work, which has been owned by Geely Holding since its opening in 2017 and operatively supported by Volvo Cars, will continue to produce Volvo XC40, the fully electric XC40 Recharge and Polestar 2 models. Now just under the control of Volvo.

In line with the name convention of Volvo Cars for his other works in China, the plant Luqiao is now called Taizhou, which reflects the name of the hometown and not the home district. Javier Varela, Head of Engineering and Operations at Volvo, arranges the acquisition as follows: “The relocation of the work in Taizhou is a reasonable and logical step for both sides, as the work is now fully for the production of vehicles of the Volvo Car Group is being used. It is symbolic that the factory that produced the first copy of our first fully electric vehicle, the Polestar 2, will continue to support us with our goal of becoming a global provider in the premium electric car segment.”

In the associated communication, Volvo emphasizes that the work in Taizhou is a good example of successful cooperation between Volvo Cars and Geely Holding, as the Volvo Cars plant offers the necessary size to continue its strong growth in China. The models produced there are all based on the Compact Modular Architecture (CMA), which was jointly developed by Volvo Cars and Geely Holding.

Since the work in Taizhou is already operated by Volvo Cars, there will be no changes in his company after today’s agreement. All 2.600 employees of the factory, including manufacturing and supporting functions, will change from Geely Holding to Volvo Cars.

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1 thought on “Volvo takes production of the XC40 Recharge & Polestar 2 in its own hand”

  1. The Volvo Car Group has a much bigger problem to solve:
    The demarcation of the brands »Volvo« and »Polestar«, which is – as I see – not really both in the “segment of the premium electric cars” can be settled!?

    Reply

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