• Mar 20th 2006 at 3:30PM
  • 4
After selling imported Volvos through an independent dealer network since the mid-'90s, the company is finally setting up production of its S40 model in China. With import duties running around 25 percent, Volvo simply can't be competitive in the mid-market segment without in-country production.

So far, Chinese production will be limited to the S40, which will be built at Changan Ford's production plant in Chongqing. Volvo is targeting annual production of 10,000 units.

There appear to be no plans at present to manufacture higher-end Volvos in the Middle Kingdom. The company plans to launch its C70 convertible in China in 2007, followed by its all-new flagship S80 sedan.

[Source: Volvo Cars]

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    • 1 Second Ago
      • 9 Years Ago
      Import duties at 25%. Wonderful. I certainly hope there will be a 25% import duty on the Geeleys and Cherys when the arrive in the US.
      • 9 Years Ago
      I think the US should adopt a "mirror" trade policy. What ever the restrictions are on importing our goods will be applied on their goods. Simple as that.
      • 9 Years Ago
      Totally agree with Andy
      • 9 Years Ago
      Giving them most favored nation trade status didn't help things. Automakers sending their most modern factory equipment there either does not them either. I'm all for fair trade, but you can't compete with Chinese wages.
      We need to protect our home markets.
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