The Geely Holding-owned manufacturing plant, with operational support from Volvo Cars since its opening in 2017, will continue to produce the Volvo XC40, the fully electric XC40 Recharge and the Polestar 2 models.
Volvo Car Group has entered into an agreement with its parent company Geely Holding to acquire full ownership of the Luqiao manufacturing operations in China, thereby consolidating the plant within the company’s own assets. Following on from previous agreements between the two parties, this transfer meant that within the next two years, Volvo Cars would completely own all the plants that produced its cars. The plant’s manufacturing capacity will be fully available to the Volvo Car Group, further cementing the company’s position in China, its largest market. Additionally, the transfer creates a clear ownership structure within both Volvo Car Group and Geely Holding.
The Geely Holding-owned manufacturing plant, with operational support from Volvo Cars since its opening in 2017, will continue to produce the Volvo XC40, the fully electric XC40 Recharge and the Polestar 2 models. In line with the Volvo Cars naming convention for its other plants in China, the Luqiao plant will henceforth be referred to as the Taizhou plant, reflecting the name of its home city rather than its home district.
All models produced there today are based on the Compact Modular Architecture (CMA), co-developed by Volvo Cars and Geely Holding. Geely Holding and Volvo Cars are continuously working to optimize collaboration and operating structure within the broader group. The relocation of the Taizhou plant follows the creation of Orobe, a new, stand-alone business that would merge the companies’ powertrain operations, as well as an agreement in July, which stated that Volvo Cars would be part of the company’s joint ventures. Geely will acquire the holding’s stake. China.
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Since Volvo Cars already operates the Taizhou plant, there will be no change in its operations following today’s agreement. All 2,600 employees of the plant, including manufacturing and ancillary functions, will be transferred from Geely Holding to Volvo Cars.
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