Chinese media say small-batch production of the Volvo S60L in China has started. The news came from Geely chairman Li Shufu himself, speaking to journalists on the Fortune Global Forum 2013 in the city of Chengdu in Sichuan Province, which is also the location of the new Volvo factory.

The Volvo S60L is expected to debut on the Chengdu Auto Show in September. Mass production will start in October and launch on the Chinese car market will follow early next year. The S60L is a stretched version of the European S60 (pictured), stretched by 12 centimeters in the middle for more space in the back.

The Volvo S60L will compete head-to-head with the locally made & stretched Audi A4L and BMW 3Li. The base Volvo S60 is currently imported into China, price starts at 280.000 yuan, the China-made S60L will start around 220.000 yuan. Engines: 2.0 Turbo and 3.0 Turbo.

The Chengdu factory will have a capacity of 125.000 cars a year. The factory will make the S60L, the X60 SUV, and a new mid-size sedan that is yet under development.