Geely wants to build three Volvo plants in China

Article by Christian A., on September 15, 2010

In China, Zhejiang Geely Holding Group may build up to three plants to produce Volvo cars. Just last month, Zhejiang Geely, parent of Geely Automobile Holdings, completed its purchase of the Swedish brand.

Geely spokesman Ning Shuyong said that the company aims to reach a combined capacity of 300,000 Volvos a year in China.

Ning clarified that the plan still has to be approved by the Chinese government and Volvo’s board but that the possible sites for the three Volvo plants are the Jiading district on the outskirts of Shanghai, the southwestern city of Chengdu, and the northeastern city of Daqing.

In front of Hong Kong reporters, Li Shufu, chairman and founder of privately held Zhejiang Geely, said that there is no rush with regards to the final decision for the plants in China. When asked about the plants’ timetable, Li responded, “It may take years."

The purchase of the Volvo car brand marks China's biggest ever overseas auto acquisition. With the completion of the sale, Geely is now faced with the task of making Volvo profitable once again.

In 2009, Volvo Car Corp. recorded revenues of $12.4 billion with sales of 334,000 cars; however, it posted a pre-tax loss of $653 million.

Industry observers say that an essential part of Li's plan to turn around Volvo is major new investment. The new manufacturing facilities in China are expected to nearly double Volvo’s capacity so as to make the most of China's massive auto market. [via autonews - sub. required]

Topics: geely, volvo, china, factory

If you liked the article, share on:

Pin It

Comments

Recommended

To the proud owners and owner-to-be of the Porsche 991 Carrera GTS, there's good news for you all. German automobile manufacturer Porsche recently confirmed to the public that the Porsche...
by - March 23, 2017
McLaren diehards, this is the moment that you're all waiting for. The British automaker recently publicized the teaser outline of its new automobile that will hit the streets soon, dubbed...
by - March 23, 2017
PSA seems very confident about conquering the world. The purchase of Opel/Vauxhall for €2.2 billion ($2.3B) from General Motors makes PSA the second largest car company, just behind the Volkswagen...
by - March 23, 2017
Reporting for duty. It’s been a year since the Victoria Police was loaned a new Mercedes-AMG GLE 63 S Coupe. In those 12 months, the coupe served as the law...
by - March 23, 2017
After making its debut at the Paris Motor Show last year as a concept car, the Trezor by Renault managed to bring home the 2016 Concept Car Design Of The...
by - March 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries