Swedish automotive manufacturer Volvo Group is set to invest $11bn to establish new plants and develop new products with a focus on new line-up of advanced powertrains.
The total investment is being funded by the Chinese automaker Geely Automotive, which acquired Volvo in August 2010 for $1.8bn.
Volvo will use the total funding to establish two new Volvo plants in China. The company is also planning to develop two new vehicle architectures, one for its smaller models, and one for larger models. They will be equipped with new Drive-E powertrains and will start phasing in over the course of the decade.
The new powertrains will also be used to update Volvo S60 sedan, V60 wagon and XC60 crossover models, which will be introduced in the coming months as 2015 models.
Features of the new Drive-E engines include direct injection and variable valve timing, new 8-speed automatic gearbox and Stop/Start. The engine is expected to reduce fuel consumption by 13% to 26%. Volvo will roll out the first model that is equipped with the new Drive-E engine family into US showrooms this month.
Besides this, Volvo will develop battery-assisted versions of the E-Drive family including the new plug-in hybrid launched in Europe recently.
