Geely and Volvo will start selling jointly developed units in 2015

Article by Anita Panait, on August 26, 2013

Geely Automobile Holdings will commence selling vehicles jointly developed with Volvo Cars in 2015.  Geely chief executive Gui Sheng Yue told reporters that the companies have entered into actual research and development stage, adding the new vehicles will be out in 2015. Geely’s joint development with Volvo is seen to help polish the Chinese carmaker’s image as the Swedish auto company is already known for building safe and reliable cars.

Geely is seeking to become China’s largest auto exporter. Volvo has commenced test runs at its first production site in China, with an aim to doubling its sales to 800,000 vehicles by 2010.

Geely said in a statement that since the economic environment in most of their major markets is seen to become more difficult in the second half of 2013, the company’s operating environment would remain challenging in the rest of the year.

The carmaker added that competitive pressure on domestic brands in China is expected to increase considerably in the next years, no thanks to moves by foreign brands to boost their presence in the country.

Zhejiang Geely Holding Group inked a a memorandum with Saab in March 2012 to "leverage its full access" to technology to develop vehicles. In February. Volvo announced it wound set up a joint research and development center in Gothenburg, Sweden, with Geely.

Geely acquired Volvo from Ford for $1.8 billion in what is considered as biggest overseas purchase by a Chinese carmaker. Geely posted a 37-percent rise in first-half net income to CHY1.4 billion, surpassing analysts' estimates. The Chinese carmaker also logged a 19-percent hike in vehicle sales in the first half of 2013 to 263,544 units. Geely is expecting to sell 560,000 vehicles in full year 2013. [source: Bloomberg]

Topics: geely, volvo

If you liked the article, share on:


Login or Create new account to add a comment!


Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016
Driving the newest 2017 BMW 5-Series (G30), Clive Owen (Closer, Children of Men) returns to his role as “The Driver”. In this latest installment, what initially starts as a simple...
by - October 24, 2016
Many had wished that a Lamborghini Huracán Superleggera would somehow make a surprise debut at the recently held Paris Motor Show. Sadly, not a single Lamborghini appeared anywhere in sight....
by - October 24, 2016
Aston Martin and Red Bull Racing teamed up for the first time in creating what looks like one of the most ferocious beasts in history. The British car manufacturer has...
by - October 24, 2016
German premium carmaker Audi is reportedly planning to buy back around 25,000 Audi Q7 SUVs powered by its 3.0-liter V6 TDI engine in the United States. The buyback should compensate...
by - October 24, 2016