Volvo to upgrade production in Sweden
Chinese-owned Volvo Car Corporation will spend about half of $11 billion of planned investment on a production upgrade in Sweden that it says will cut costs and help sales of its cars buck a market downturn.
Volvo, which Geely bought from Ford in 2010, highlighted the tough conditions it faces in its key market of Europe, as chief executive Hakan Samuelsson appeared to cast doubt on the timing of its 2020 sales goal.
The maker of premium cars said it would introduce new, simpler production methods, and only one engine size.
The plans would mark a final technological break with Ford, cut production costs through economies of scale and greater efficiency, and produce more attractive cars to lure buyers even in an economic downturn, it said.