City of Daqing planning to invest $441 million in Volvo
By Andrew C., 26 Aug, 2010. 0 Comments
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To help finance Zhejiang Geely Holding Group Co. acquisition of Volvo Car Corp. from Ford Motor Co. that's worth about $1.8 billion, the oil city of Daqing in northeast China will invest 3 billion yuan ($441 million). This Bloomberg News report is lifted from Swedish newspaper Dagens Nyheter. This investment will give the Daqing State Asset Operation Co. a 37% share of Volvo. This act may also place the city to be among those considered for a Volvo assembly plant to be built by Geely. Reuters, which cited the Shanghai Securities News, named the other potential sites. These include Beijing, Chengdu in the southeast and Ningbo in the east. The Securities News also indicated that Geely plans to sell 150,000 Volvo cars in China yearly by 2015. Geely aims to launch production of the Volvo XC60 crossover in China this year, to be followed by the Volvo S60 in 2011. Geely is expected to complete the acquisition of Volvo in the third quarter.
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