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Volvo boosts output at Swedish plant

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Volvo boosts output at Swedish plant

Douglas A. Bolduc

Automotive News Europe -- September 20, 2010 06:01 CET

Volvo Car Corp. is boosting production 7 percent at its plant in Torslanda, Sweden, to meet growing demand for its top-end models. The factory's combined daily output of the XC90 and XC70 premium crossovers, V70 and V60 premium wagons and the flagship S80 sedan will rise to 48 units a day from 45, the company said in a release Friday.

"This is a positive and concrete demonstration that Volvo Cars is heading in the right direction," Volvo Senior Vice President of Manufacturing Magnus Hellsten said in the statement.

The increase results in the plant's annual production rising to 155,000 from 145,000.

"We estimate that we will manage a continued increase in demand for our cars during 2011,” Hellsten said.

Volvo recently added a fourth shift at its engine plant in Skovde, Sweden, to increase its output of diesel engines to 4,000 from 2,700 units a week.

Through August, Volvo's European sales are up 18 percent to 147,876 units, according to industry group ACEA.

Earlier this week Zhejiang Geely Holding Group, which last month completed its purchase of Volvo from Ford Motor Co, said may build as many as three plants in China to produce the Swedish brand's cars.

If the plan goes ahead as expected, it would give Zhejiang Geely a combined capacity to make 300,000 Volvos a year in China, Geely spokesman Ning Shuyong told Reuters.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100920/ANE/100919865/1131#ixzz106KDwVHl

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