Geely leapfrogs into luxury car market with Volvo

14:15, March 31, 2010      

Email | Print | Subscribe | Comments | Forum 

Geely hopes to use its takeover of Volvo to crack China's fast-growing luxury car market and vault into global contention using the Swedish brand's cutting-edge technology.

Zhejiang Geely Holding has agreed to pay 1.8 billion dollars for Volvo from Ford Motor Co in the biggest overseas acquisition by a Chinese carmaker, propelling Geely into a market dominated by Audi, Mercedes-Benz and BMW.

"I think if they do things properly and maintain the Volvo image in China and don't mix it with the Geely brand, I think they have got a very big chance to be successful here," said John Zeng, an analyst at IHS Global Insight.

Geely will spend 2.7 billion dollars on the takeover -- the original price tag plus 900 million dollars in working capital -- to turn around the loss-making Swedish carmaker recognised for sturdy family-friendly vehicles.

Better known for making cheap small cars, Geely has been at pains to reassure drivers around the world that the two brands will remain separate.

Geely plans to keep Volvo manufacturing plants in Sweden and Belgium and is considering opening factories in China, the world's biggest auto market.

"Volvo will retain its own distinctive features and will... continue to develop in the top luxury car sector," Geely chairman Li Shufu said Tuesday after flying back from Sweden, where the deal was signed at the weekend.

"Relations between Geely and Volvo in the future will be like brothers, not father and son. They will respect and support each other and grow together."


【1】 【2】 【3】

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
Major headlines
Editor's Pick
  • Auto dog washing machine
  • Top 10 sexiest women in music
  • 'Green wall' helps curb desertification
  • Moscow mourns victims of attacks
  • Nine killed in Washington area shooting
  • 12th Int'l Energy Forum opens in Mexico
Most Popular
Hot Forum Dicussion