Volvo Cars committed to West China development: CEO

STOCKHOLM -- Volvo Cars Group is committed to the development of West China, Hakan Samuelsson, the company's president and CEO said.

"We are very committed to Chengdu and our development in West China Exploration," Samuelsson, who attended the 2013 Fortune Global Forum in China's western city of Chengdu on June 6-8, said in a recent interview with Xinhua.

He said his company, as an official partner, hosted one of the Special Roundtable Discussions on the future of transportation.

The forum focused on the monumental changes that are defining China's future and shaping the course of global business for the 21st century.

Samuelsson believes that for purposes of "both economic prosperity and a better life for the Chinese people" illustrated in the "Chinese dream" President Xi Jinping raised over the last few months, West China plays a critical role in closing gaps created in the past.

"It is the right direction for China and the start of a transformation as we are doing for Volvo Car Corporation," he said.

Having witnessed great changes of Chengdu over the past decade, where many other Fortune 500 companies have set up offices and poured in investment, Samuelsson said that he was "glad Volvo is a pioneer in this regard," referring to a new "world-class Automotive Industrial Base in this city."

According to the company's latest financial report, Volvo Cars will inaugurate in Chengdu its first Chinese manufacturing plant, which Samuelsson vowed will follow the same principles and processes as its European car plants.

Like many other global companies, Volvo Cars believes that Chengdu is a very good choice for regional hub.

"Volvo is coming to start a new chapter of itself and Chengdu, shifting the city and province by adding the automobile industry to IT," said Samuelsson.

"Volvo since three years ago have started building our 3rd world-class or state-of-the-art manufacturing plant in Chengdu. We will also build logistic center, Volvo Museum and Brand Experience Center as well as training center in Chengdu," said Samuelsson.

"Chengdu is a very high priority for the entire organization. Chengdu and the surrounding region is not only a huge market but also a good location to invest based on talent, cost, government support and supplier base," he said.

"The automobile industry has a very fierce competition in China. In the first quarter, our sales volume grow by 30 percent and far above the market average," he said, expressing "confidence" that after the Chengdu plant starts production and six new models are launched in China this year, "we will make our China Growth Plan a success and Volvo's success in China is very important for our global transformation."

Samuelsson emphasized that Geely Holding Company, based in China, as Volvo Cars' parent group is the company's "good advantage."

Talking about structural change in Volvo Car products for China, he said, "we apply global and consistent sourcing and supplier management, manufacturing technology and quality standard as in Sweden and Belgium while our competitors might do it a little different."

"Also we are studying car electrification and have provided C30 electricity vehicle and V60 plug-in hybrid for test drive in Shanghai," said Samuelsson.

"In short, Volvo regards China its 2nd home base and is building a full-fledge capability and strategic investment in China," he said. "We are happy with our progress."