Geely will produce up to 300,000 Volvo cars a year
By Andrew C., 30 Aug, 2010. 0 Comments
2010 Volvo C30
With a 2011 break-even target, China's Zhejiang Geely Holdings will produce up to 300,000 Volvo cars a year at a new factory in Beijing, according to a source. A document submitted to regulators by Geely also reportedly revealed that Zhejiang Geely, parent of Hong Kong-listed Geely Automobile, aims to complete the purchase of Ford Motor Co.'s Volvo unit for up to $2 billion by May. Adding this much capacity would nearly double Geely's current output, which reached 321,900 units in 2009 for the entire group, up 45% from a year earlier. Geely targets that by 2015, it will be able to achieve annual sales of 2 million cars. Analysts say however, that Geely has no experience running a foreign company, making these targets highly difficult to achieve. John Zeng, an analyst with IHS Global Insight, called Geely's plan to break even next year as being optimistic. Geely has to build a plant first and Chinese buyers might need some time to accept a Volvo that's made in China. Zeng said that eventually, it will break even but it will take some time. [via autonews - sub. required]
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