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Chinese city beats the drum for local factory

Volvo: "Don't know where they got the figures"

Published fredag 28 juni 2013 kl 19.13

The Chinese city of Daqing, majority owner in automaker Volvo Cars, has said the Volvo factory in the city will produce 300,000 cars year. But Volvo in Sweden say none of the estimates are correct, telling news agency TT they "don't know" where the figures have come from.

Daqing's website says the local factory has been completed at a cost of $750 million, and that an agreement over operating licenses has been reached with the Chinese government, according to the US-based website Automotive News China.

But Stefan Elfström, spokesperson for Volvo Cars in Gothenburg, knows nothing of it. "I do not know where they got these figures," he tells TT. "The fact is the process is not complete. But we're counting on having the licenses in place well before production starts in 2014."

Volvo today has around 7,000 employees in Sweden. The employees in the company's two Chinese factories will make about one-fifth of what Swedish workers make.

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