Swedish carmaker Volvo is planning to invest $11bn to develop new products and increase its manufacturing presence in the next few years.
The company aims to acquire 20% of China's premium auto market by 2015 and to increase Chinese deliveries to 200,000 by 2014.
According to Volvo spokesman Per-Ake Froberg the investment would come from Volvo itself, through cash flow and borrowing.
In 2010, Zhejiang Geely Holding, a Chinese car manufacturer, acquired Volvo from Ford Motor for $1.8bn including a $200m note with balance paid in cash.
Last month, Volvo president and CEO Stefan Jacoby told Reuters that a five-year $10-11bn investment plan would mean new products and factories in China to meet the goal of doubling sales to 800,000 units in 10 years.
Geely president Li Shufu was quoted by German magazine Wirtschaftswoche as saying that Volvo would use the money to build a new engine factory, beef up research and development and upgrade technology.
The Swedish carmaker plans to increase Chinese deliveries to about 200,000 by 2014 from 47,000 last year.
