#Carmakers’ Rush to #China Could Fuel Another Bubble [#Volvo]

By JACK EWING

FRANKFURT — When Stefan Jacoby, the chief executive of Volvo, turned up in China on Friday, it was yet another sign of where the action is in the auto industry these days. But some people are starting to wonder whether there is a little too much action.

Mr. Jacoby was in Beijing to announce plans to build a new factory in China, with the goal of selling 200,000 vehicles there by 2015 — an ambitious target, considering that Volvo sold only 374,000 cars worldwide last year.

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Carmakers’ Rush to China Could Fuel Another Bubble