Volvo’s decision to export its S60 Inscription “Chengdu manufactured vehicle” to the United States is another turning point for Chengdu’s automotive manufacturing capabilities and industry. Volvo’s Chengdu plant, which became operational in June 2013, was their first plant in China and marked a milestone for the Sichuan capital.

What rationale its executives had in determining Chengdu as their first Chinese plant surprised many pundits, but we at have known all along the reasons are all to apparent as with many automotive corporations basing themselves within the Western China economic juggernaut.

The Volvo Chengdu plant, which has an annual production capacity of 125,000 vehicles, utilises Volvo’s stringent manufacturing standards and technologies and each car is individual inspected to ensure its compliance with the “Volvo seal of approval”.

Thereby when Volvo announced in January 2015, it was exporting the Chengdu manufactured S60 Inscription, it should not have surprised knowledgeable automotive industry experts.

Indeed various media commentators made various unnecessary and unfounded comments with the Volvo S60 being manufactured in China. However these comments were made without proper justification and not truly understanding how advanced and quality orientated Chengdu’s automotive manufacturing and supply chain capabilities are.

Furthermore in today’s age of globality, corporations are free to determine their manufacturing bases. Corporations understand their legal obligations to both internal and external stakeholders, their environmental requirements and Volvo’s decision to base itself in Chengdu and export its manufactured vehicles to the United States is an extraordinary testament to its management and leadership.

As the press release noted, “Chengdu is Volvo’s main production facility in China and has been built in accordance with globally monitored quality standards such as the Volvo Cars Manufacturing System, which ensures Volvo Cars’ global quality engineering, quality audit and quality assurance standards.”

“Levels of installed technology and equipment are the same as the company’s European facilities, as are the working environment, safety and environmental performance standards.”

Chengdu, home to more than 4 million vehicles, is China’s third largest car market. Within Chengdu many reputable global brands such as VW, Toyota, Geely and Peugeot have developed manufacturing plants and utilise leading edge technologies and environmental standards.  

The Chengdu Economic and Technological Development Zone (CEDZ) in Lonqquanyi district is home to many of these manufacturers and also houses over two hundred secondary parts, equipment and material suppliers.

Indeed with Volvo’s S60 Inscription “Chengdu manufactured vehicle” reaching the US markets, it will only be a matter of time before Asia, Europe and the Middle East experience the marvels of Volvo Chengdu’s engineering excellence. 

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