Ford’s Volvo division to start making cars in China

Ford Motor’s Volvo car division has confirmed that they would soon be making cars in China beginning this year. This is a big step for the company, as they would now be entering into one of the most competitive markets in the world, which is growing fast.

Chief Executive Fredrik Arp said in a statement that the company would be developing their S40 sedan at a plant owned by Changan Ford. This is a joint venture of Ford based in the southwestern city of Chongqing.

Volvo however also said that they are somewhat late in entering this market, which holds a huge potential for American and European manufacturers. However, they are still confident of churning out profits as soon as next year.

The company aims to reach its Chinese manufacturing target of 10,000 cars a year in 2007. They would be working with many existing partners of Changan Ford to meet the government’s local content requirements and the company’s quality standards.

The market is already quite competitive with existing players like Volkswagen, Audi, and their American rivals General Motors.