CHINESE officials said Volvo Car Corp plans a manufacturing base in southwest China's Chengdu City as it aims for expansion in the world's biggest auto market following its buyout by auto maker Geely last year.

An official with the city's Automotive Industry Investment Bureau confirmed a report yesterday that the Swedish car maker has chosen Chengdu as a manufacturing base, but would not give further details.

The Volvo factory reportedly will focus on making compact and economy cars on a large scale. Shanghai and northeast China's Daqing City also had been vying for new Volvo factories following the acquisition by Geely.

Volvo plans a news conference to announce its strategy in China later this week in Beijing, the Chengdu Overseas Media Service, a local media group, reported, citing officials from the city's trade development zone.