Nothing to do with Saab, yet. And quite possibly nothing to do with Saab for some time due to incredibly low volumes, but an interesting development from the other Swede, nonetheless.
Import duties into China are so high, around 25%, that Volvo have decided it’s time to start making S40’s inside China itself. Volvo have 45 sales outlets in China and sold 3,000 cars there last year, a number they’re hoping to boost with competitive, locally made S40’s.
"Local production is the key to remain competitive in China," said the chief executive of Volvo Cars, Fredrik Arp.
"We are facing a scenario where the import duty is levelling out on 25 percent and our main competitors are already producing their volume models locally."
The car will be built at a production plant in Chongqing, in the south west of the country, owned by Volvo’s partner in China, Changan Ford. The company is aiming to manufacture 10,000 cars a year there.
From The Local.