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Volvo considers manufacturing in China

Volvo has announced that it expects to see a significant sales growth within China over the next five years.

Last year, Volvo sold 2,500 cars in China, but Hans-Olov Olsson, Volvo CEO, expects a 12% increase in sales for this year. The CEO also admitted he is seriously considering starting-up a manufacturing process of Volvo cars in China.

“To reach a competitive market situation, Volvo is studying local manufacturing opportunities in China and a decision will be taken in the near future,” he said.

Analysts predict that by 2010, the premium car segment will rise from 105,000 units to at least 345,000 units. Volvo currently commands a 2.3 per cent stake in the segment, with the new S80 – having achieved a 2,208 unit sales level – being Volvo’s best seller.