Volvo, Geely mull starting production in Chengdu

Volvo Cars, recently acquired by Zhejiang Geely Holding Group (0175.HK) from Ford (F.NYSE), is strongly considering taking over an existing Geely factory in Chengdu and converting it to a pure-Volvo factory to increase China production and sales, Bloomberg reported, citing statements by union representatives on the Volvo board. Volvo CEO Stefan Jacoby has said that Volvo may need as many as three plants in China to achieve its goal of doubling sales to 800,000 cars in 10 years. Volvo has not set a timetable for a decision. Volvo is also planning to announce organizational changes that would affect operations, including design and research and development.