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Geely drives to lift Volvo output
By Ding Yining |
September 15, 2010, Wednesday
|
Print Edition
Print Edition
ZHEJIANG Geely Holding Group may build three plants in China that could double the production capacity of Volvo vehicles to 300,000 annually.
Two of the plants will be located in Jiading District on the outskirts of Shanghai and Chengdu in Sichuan Province. Geely is also considering a third facility in the northeastern city of Daqing in Liaoning Province, Chairman Li Shufu told the Wall Street Journal in an interview yesterday.
Each factory will be able to make 100,000 cars each year and the Chengdu plant will be operational within a year. Li said the three plants will help the company to serve customers of Volvo in different regions of China.
"Our real challenge is how to evolve and develop the Volvo brand further," Li was quoted as saying in the interview.
Ning Shuyong, a company spokesman, said in a phone interview with Shanghai Daily yesterday that these are "long-term plans" which need approval from board members and the Chinese government.
Geely completed the US$1.5 billion deal to take over Swedish-based Volvo from Ford Motors Co in early August - the largest overseas acquisition by a Chinese auto maker which aims to drive Volvo back to profit this year after the Swedish firm made a net loss of US$653 million. Volvo sold 334,000 units globally in 2009.
Geely sold 195,734 vehicles in the first six months of this year, up 42 percent annually, to account for 49 percent of the group's full-year sales target of 400,000 units.
Two of the plants will be located in Jiading District on the outskirts of Shanghai and Chengdu in Sichuan Province. Geely is also considering a third facility in the northeastern city of Daqing in Liaoning Province, Chairman Li Shufu told the Wall Street Journal in an interview yesterday.
Each factory will be able to make 100,000 cars each year and the Chengdu plant will be operational within a year. Li said the three plants will help the company to serve customers of Volvo in different regions of China.
"Our real challenge is how to evolve and develop the Volvo brand further," Li was quoted as saying in the interview.
Ning Shuyong, a company spokesman, said in a phone interview with Shanghai Daily yesterday that these are "long-term plans" which need approval from board members and the Chinese government.
Geely completed the US$1.5 billion deal to take over Swedish-based Volvo from Ford Motors Co in early August - the largest overseas acquisition by a Chinese auto maker which aims to drive Volvo back to profit this year after the Swedish firm made a net loss of US$653 million. Volvo sold 334,000 units globally in 2009.
Geely sold 195,734 vehicles in the first six months of this year, up 42 percent annually, to account for 49 percent of the group's full-year sales target of 400,000 units.
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