Volvo’s piggy bank better prepare to gain some weight, because the Swedish automaker plans on accumulating $11 billion so it can invest in new products.
Volvo has been vocal about its future plans, which include employing new four-cylinder engines, a flywheel-based hybrid system, and a lightweight modular construction in newer vehicles. Attempting to sell 800,000 units globally by the year 2020 suggests that Volvo means business, and that business means spending $11 billion on new products and factories, reports Reuters.
Although owned by Chinese parent company Geely, Volvo spokesman Per-Ake Froberg revealed that funding would come from Volvo itself, through cash flow and borrowing.
“It is not Geely investing $11 billion,” he said.
Part of Volvo’s planned investment will go toward securing a greater slice of the Chinese market, where the automaker wants to quadruple sales to 200,000 from the 47,000 vehicles sold in 2011. Using Volvo technologies, Geely hopes to create a premium brand specifically for China.