Chinese owned Volvo ready to begin car production

Manufacturing in China, the world's fastest growing market, is every carmaker's dream.
Making the dream come come true is far from easy, however, as Chinese-owned Volvo Cars has discovered.

Nearly two years have passed since Geely paid $1.8bn for Ford's Swedish subsidiary, in a deal said to be the biggest acquisition of a non-Chinese rival by a Chinese carmaker.
Last year, Volvo sold more than 100,000 cars in China, 24% more than in 2010.

Yet the Chinese authorities still see Volvo as a foreign player, which means it cannot make cars there.

"We are being treated as a foreign company," observes Stefan Jacoby, Volvo's chief executive.
"Obviously we cannot hide that we are a Swedish registered company, so we'll need to enter into a joint venture in China in order to comply with Chinese automotive regulations."


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