Asia

Volvo beefs up China strategy with new Geely plant

Volvo Cars and its Chinese owner say they're beefing up the Swedish brand's manufacturing presence in China by adding a third plant to make cars based on a new shared platform.

Under the new strategy unveiled Wednesday, the plant will churn out smaller Volvo models and vehicles for a new brand, Lynk & Co, launched last month by parent Geely Holdings.

Volvo also said it will shift some production of its upscale sedan line from Europe to one of its existing factories in northeast China, from where they'll be exported globally.

It's part of Volvo Cars' efforts to step up competition with other luxury car brands both globally and within China, the world's No. 1 auto market, after it was bought by Zhejiang Geely Holdings in 2010.