The platform, called Compact Modular Architecture, is shared by vehicles produced by sister brands Lynk & Co and Polestar, with Geely also planning to base a new Coupe SUV on it.Īutomakers are going through one of their most uncertain periods, hit by trade wars, rising costs for developing electric cars and an industry downturn that has dented even the most profitable brands. The XC40 is based on a platform Volvo developed with Geely designed to share the costs of developing and manufacturing a competitive vehicle. The model has sold more than 100,000 units since its launch in late 2017.

in Luqiao creates extra capacity, adds flexibility to our global manufacturing network and is a clear proofpoint of our strategy to 'build where you sell'.' 'Demand for the XC40 has exceeded our most optimistic expectations,' Volvo CEO Hakan Samuelsson. Volvo, which is owned by China's Geely, said that starting April 8 it was also being manufactured in Luqiao, south of Shanghai. The dispute has been squeezing capacity at Volvo's Ghent plant, the only site where the XC40 - the 2018 European Car of the Year - is currently produced. STOCKHOLM, Sweden - Volvo Cars has started producing its XC40 compact crossover SUV in China to bump up capacity and cater for growing demand, the Swedish carmaker said on Friday.Īs the cost impact of Washington's trade war with Beijing spreads, Volvo has been shuffling manufacturing facilities for its models.

Volvo crossover xc40