Volvo S80 Not to be Locally Produced in China

Shanghai. November 20 (Gasgoo.com) Volvo China CEO, Alexander Klose, said Volvo S80 will not be locally produced in China in the next two years, Shenzhen Special Zone Daily reported today.

"When production costs and quality control have not reached a satisfactory level, there is no hurry for Volvo to introduce the next model to Chinese market," Klose said. "What Volvo needs to do in China now is to increase the output, brand awareness and market shares of the S40 model."

Klose's announcement has denied an earlier report by Beijing News this month. The report said Volvo S80 will be produced in Changan Ford plant in Chongqing by the end of next year.

Volvo S80 will compete with such premium models as Audi, BMW and Benz that have already started local production in China, the Beijing News report said.

Currently in Chinese market, imported Volvo S80 has five models based on different versions of engines and priced in a range between 498,000 yuan ($66,797) and 895,000 yuan ($120,000).

In the first tenmonth this year, S40 sold 4,971 vehicles in Chinese market, up 156.2 percent from one year earlier.

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