TAIZHOU, Zhejiang – Geely has started construction of a new facility in Luqiao District, Taizhou, Zhejiang Province, reported 21st Century Business Herald.
With a designed output capacity of 200,000 vehicles, the facility will mainly produce Geely brand models developed based on China Europe Vehicle Technology AB (CEVT)’s mid-size car module architecture and components. The CEVT is an R&D center jointly established by Geely and Volvo in Sweden.
“The new plant will be used to produce Geely’s next generation models developed by CEVT,” said Victor Yang, Geely’s PR director.
The Taizhou facility was co-founded by Volvo Car China, Geely Automobile Holdings Ltd. and Zhejiang Geely Holding Group Co., Ltd, with a total investment of ¥10 billion ($1.65 billion).
Currently, Geely has seven assembly plants in Zhejiang, Shanghai, Gansu, Hunan, Shandong and Sichuan.
Geely plans to sell 580,000 vehicles in 2014, a 6 percent increase from a year ago. This growth rate is the lowest that Geely sets in the recent four years. Geely’s priority is vehicle quality rather than sales volume at this stage, said Li Shufu, chairman of Geely Group.
According to the company plan, new models will be launched to the market starting in 2015, and Li hopes that Geely will enter the U.S. market in 2016 with models developed by CEVT.