Volvo Cars has announced expansion plans, including hiring 1,200 new workers.
The Swedish carmaker – which was bought by China’s Geely from Ford last year – said it will increase capacity at its factories in Europe, banking on strong global demand.
The company will recruit mainly engineers in Sweden and hire staff in Belgium. It is also waiting for regulatory approval for its first China plant.
Volvo Chief Executive Stefan Jacoby said the carmaker expected to sell “significantly more cars in 2011” compared with the previous year.
“We are investing in our future,” Jacoby said. “It means that we have to work hard to continue to be cost competitive … our cars are selling very well globally.”
Jacoby said Volvo was also investing to boost capacity at its plants in Europe as it had seen good demand in the United States, Europe and also China, with especially strong demand for its XC60 sport utility vehicle. Demand in Japan also remained surprisingly strong, he said.
The carmaker is also aiming to have more flexibility on its production lines to be able to react to the volatility that following the global recession.