Volvo to build first Chinese factory in Chengdu

Volvo Cars, the Swedish automaker, will build its first Chinese assembly plant in the city of Chengdu, Bloomberg reported. Zhejiang Geely Holding Group, a Chinese auto manufacturer, purchased the firm in August last year. The Swedish company’s board signed off on the new plant on Tuesday, which will probably have an annual capacity of 100,000 cars and open in early 2013. Volvo does have existing production facilities in China, with its S40 and S80L models made at a factory co-owned by Ford (F.NYSE) and Chongqing Changan Automobile (200625.SZ). The company sold 30,522 cars in China in 2010, but aims to increase this to 250,000 sales by 2015.