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]