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Volvo Trucks inaugurates factory in China
Volvo Truck Corporation is inaugurating a new factory in Jinan, China
together with its Chinese partner, China National Heavy Truck Corporation
(CNHTC). The new factory will build Volvo trucks for the growing Chinese
market. The factory has initially a capacity of about 1,200 trucks a year.
Of all the Western truck makes in China, Volvo has made a unique name
for itself by developing and expanding a strong dealership network. Sales
have increased quickly and in the space of just a few years, Volvo has
forged an extremely strong position for itself on the Chinese truck market.
The agreement on prduction in China was signed in June 2003.
The company is now reinforcing its position still further by becoming
the first European truck manufacturer with production facilities inside
the country. Volvo Trucks is also the first automotive manufacturer to
be granted responsibility for the distribution of its domestic production.
The inauguration ceremony in Jinan was attended by Volvo Group President
and CEO Leif Johansson, Volvo Trucks President and CEO Jorma Halonen,
and representatives of CNHTC as well as key Chinese state officials.
The first Volvo trucks sold in China were originally delivered back in
1934, but the export drive to China was renewed in 1997 and last year,
Volvo sold just over one thousand trucks there. Within the next few years
this figure is expected to rise to 10,000. The factory will initially
build the Volvo FM models. The industrial expansion is being paralleled
by continued efforts to develop the dealership network.
Our customers want a high service rating and competent dealers. That is
where we enjoy a strong competitive edge. Our production base here is
easier for us to grow with the market and in the longer term to include
Chinese sub-suppliers in our global production system, says Jorma Halonen,
President and CEO of Volvo Trucks.
With the new factory in Jinan, China is now the sixteenth country in the
world where Volvo Trucks runs its own production operations.
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