For the next five years, $11 billion will be spent on Volvo Cars by Zhejiang Geely Holding Group, the parent of Geely Automobile Holdings, according to a report by German magazine Wirtschaftswoche last Thursday. In 2010, Geely acquired Volvo from Ford Motor Co. Li Shufu, president of Geely, told the magazine that Geely will construct a new engine factory, enhance research and development, and give Volvo technology an upgrade.
The magazine also reported that Geely and Volvo will pool the buying of parts. They will also be jointly developing small engines and technologies for electric vehicles. Shufu said that Geely wants Volvo to regain its strength.
For the mass market in China, Geely will develop a new premium brand that uses Volvo technologies. However, this new brand will be moved to soon be a part of Geely Automotive. The report said that Volvo wants its global sales to almost double to 800,000 units by 2020. It also intends to boost Chinese deliveries to around 200,000 by 2014 from 47,000 last year.