(Yicai Global) April 20 -- Sweden-based Volvo Car Corp., controlled by Chinese carmaker Geely Automobile Holdings [HKG:0175], is setting up a US plant to produce cars for the Chinese and European markets, unleashing a powerful response to accusations that China is taking jobs from America, its chief executive said.
The plant, which is expected to bring 4,000 new jobs to the area, is under construction in southern California. The firm hopes to put it into production next year and dedicate it to building compact cars.
At the Shanghai International Automotive Industry Exhibition, Hakan Samuelsson, Volvo's chief executive, highlighted the significance of US-sourced vehicle exporting, especially to china. "From an American horizon we see that we create 4,000 jobs in South Carolina. Half of those jobs will be related to export to Europe and China."
Acquired by Geely in 2010, Volvo manufactures its S90 model for the American market in Daqing, a city in China's northern province of Heilongjiang. The move made it the first auto brand producing cars destined for the US in Chinese factories.