Saturday, January 22, 2011

Volvo boosting XC60 production, ponders bringing China-built cars to U.S.



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New Volvo CEO Stefan Jacoby has stated publicly that the Swedish automaker plans to double global sales to 800,000 units per year by 2020. That’s a significant increase by any measure, and the company’s popularXC60 crossover appears to be a big part of those plans. Automobile reports that the Geely-owned automaker plans to increase production of the popular crossover to 100,000 units globally, with quite a few of those extra units reserved for the rebounding U.S. market. Volvo is reportedly optimistic that it can increase XC60 sales by eight percent over 2010 levels.
We guessing Volvo can increase production at its existing plants to nudge XC60 sales beyond the six-figure mark, but to hit 800,000 total units per year, a new plant is likely needed. It just so happens Volvo is planning a new factory in China, and Automobile cites a report by The Wall Street Journal that suggests the idea is being kicked around to build vehicles in the emerging market and ship a portion of them them to our shores.
The plan makes abundant sense from a cost standpoint, but the move would have to be approved by the Chinese government. It should help that Volvo is owned by a Chinese automaker, and we’re thinking it’s only a matter of time before “Made in China” will include cars and trucks ’round these parts before too long.
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