Volvo Car Group has reached an agreement with its parent company, Geely Holding, to acquire full ownership of its Luqiao manufacturing operations in China – consolidating the plant within the company’s own assets.

This acquisition means that, within the next two years, Volvo Cars will own all the plants producing its cars. The Luqiao plant’s manufacturing capacity will be fully available to the Volvo Car Group as the company aims to strengthen its position in China. The transfer also creates a clearer ownership structure within Volvo Car Group and Geely Holding.

The plant has been owned by Geely Holding and received operational support from Volvo Cars since its 2017 inauguration. Following the transaction, it will continue to produce the Volvo XC40, the fully electric XC40 Recharge and Polestar 2 models.

In line with Volvo Cars naming convention for its other plants in China, the Luqiao plant will now be referred to as the Taizhou plant, reflecting the name of its home city. The models produced in Taizhou plant are all based on the Compact Modular Architecture, co-developed by Volvo Cars and Geely Holding.