Gasgoo.com (Shanghai October 31) - Volvo's expensive new research and development center in Shanghai's Jiading district has already begun operation, with work commencing on two new models directed specifically at the Chinese market, auto.163.com reported the manufacturer's Chairman of China Operations Shen Hui as saying. Mr. Shen made the remarks at an interview done on the floor of the CEIBS 9th Annual China Automotive Industry Forum held in Shanghai late last week.

When asked for more specifics on the models being worked on, Mr. Shen (pictured above) revealed that there was one subcompact and one small car, both of which "will definitely surprise you."

No comment was given on the slow progress on the manufacturer's planned production sites in Chengdu, Sichuan and Daqing, Heilongjiang, however. Mr. Shen said that recent media speculation was all false. He compared the one year Volvo has taken with the two to three years Volkswagen took for finish its programs. Mr. Shen affirmed that Volvo had government support and was following all the necessary procedures to get the site working as soon as possible.

Work on Volvo's C30 pure electric (pictured below) will be done at the Shanghai site. The 306 acre site will also be responsible for new energy product and technology work.