Volvo is expanding production of its XC40 SUV in Europe and China in an effort to meet rising demand. According to the company, nearly 80,000 orders have been placed for the SUV, which prompted the company to expand production at its Ghent manufacturing facility. Production capacity will be added at the company’s Luqiao plant in China in 2019.
Volvo President and CEO Håkan Samuelsson stated that the XC40, which first launched in 2017, “has surpassed even our highest expectations.” The Swedish automaker also plans to capitalize on the popularity of its new, smaller models with the introduction of new models on its CMA, which will include fully electric vehicles and be sold globally in all major regions. Further details are yet to be released.
“The small SUV segment is the fastest-growing segment in the industry now,” said Samuelsson. “With these additional CMA-based models, we expect to benefit further from that growth.”
Global output for the new-generation S60 will take place at the company’s US plant, slated to begin production later this year. The main production site for the V60 will be a factory in Torslanda, though some output will continue in Ghent.
Zhejiang Geely bought Volvo from Ford in 2010 and spent over $11 billion modernizing its production facilities. In 2017, Geely purchased nearly 50 per cent of Malaysia’s Proton Holdings and 51 per cent of UK automaker Lotus.
Geely’s owner, Li Shufu, has high expectations for the company, with the ambitious goal of turning it into a global player. In 2016, he unveiled Lynk & Co, a brand aimed at younger consumers. Volvo and Geely own 30 and 50 per cent of Lynk & Co, respectively. Ownership of the rest of the company lies with Zhejiang Haoqing Automobile Manufacturing. Lynk & Co shares the production line in a Luqiao factory with Volvo XC40.
