Currency fluctuations make it "very difficult and challenging" to sell European-made cars in the United States, Jacoby said.

"Our first priority is to extend production to China," he said.

Volvo will make cars according to Chinese consumer's needs, Jacoby said.

"If you want to be successful in China, you have to listen to the customers in China, and adopt their cars as well."

Volvo will reveal details of its Chinese manufacturing plan within the next couple of weeks, Jacoby said.

At an Oct. 27 meeting in Stockholm, Sweden, Jacoby said that Volvo is considering setting up as many as three factories in China, with one of them in Chengdu in the southwest, if the Chinese government come over to the plan.

Volvo is making plans about dealership, and has not decided when to start to expand its productions in China, Jacoby added.

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