Geely has given its Volvo Cars subsidiary control of the car plant in Luqiao, China, which produces the Polestar 2 and Volvo XC40 Recharge electric models, among others, and as part of the move, the Luqiao manufacturing plant will be renamed Taizhou.
The parent and subsidiary have agreed to incorporate the plant into Volvo Cars assets, according to a statement, following an earlier agreement between the two sides that Volvo Cars will fully acquire from Geely all plants producing its cars within the next two years. In Luqiao, this is the case with the Volvo XC40 and the all-electric XC40 Recharge and Polestar 2 models, all of which are based on the Compact Modular Architecture (CMA) jointly developed by Volvo Cars and Geely Holding.
Volvo Cars' position in China is to be strengthened by the new ownership structure, the manufacturer says. In addition, the transfer of the plants creates a clear allocation within both the Volvo Car Group and Geely Holding. For the employees at the factories, nothing is to change in the day-to-day operations.