Geely plans to up Volvo production to rival Mercedes-Benz, BMW

17:48, August 26, 2010      

Email | Print | Subscribe | Comments | Forum 

Chinese carmaker Zhejiang Geely, which acquired luxury brand Volvo this year, plans to increase Volvo's production capacity to 600,000 units in the next three to five years so it can better compete with Mercedes-Benz and BMW, said Li Shufu, chairman of the Zhejiang Geely Holding Group.

Li said that Geely will definitely build some new Volvo factories in China. Otherwise, the acquisition of Volvo would be a pure financial investment. Only opening new factories in China can increase the capability of research and development personnel and promote the development of auto parts companies.

However, Li pointed out that Volvo is a completely independent international auto company, and in order to restore Volvo to the leading position it held in the 1970s and 1980s, the cars should be produced wherever they are sold. In other words, Volvo cars sold in Europe should be produced in Europe, and those sold in China should be produced in China.

In response to claims on the official Web site of Shanghai's Jiading District government that Volvo will build a factory in Jiading District, Li said that although Jiading has a strong wish for a Volvo factory to be built there, Volvo's executives and board members have not yet discussed it, and the site of the factory is still undecided.

Li denied the claim that Geely "married" Volvo and said the "brotherhood" between both companies was already established when Geely conducted research into the feasibility of the acquisition long ago. Geely will not simply move all of Volvo's production facilities to China. Instead, the company hopes Volvo can continue to be headquartered in Sweden.

According to Geely's half-year financial report, the company recorded revenue of over 9.2 billion yuan in the first half of 2010, up 55 percent from the same period of last year. Meanwhile, net profits that belong to the shareholders in Geely's wholly-owned listed company reached 804 million yuan, up 35 percent from last year, and the earnings per share reached over 0.1 yuan, up 22 percent from a year earlier.

By People's Daily Online

(Editor:黄蓓蓓)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Players of Iran throw up their coach Velasco Julio during the awarding ceremony at the 16th Asian Men's Volleyball Championship in Tehran, capital of Iran, Sept. 29, 2011. Iran won the champion after beating China 3-1 in the final on Thursday. (Xinhua/Ahmad Halabisaz)
  • Greek artists burn copies of emergency tax notices during a protest against austerity measures in Athens, Greece, on Sept. 29, 2011. The Greek government is facing a new wave of protests as it introduces new austerity measures to obtain the sixth tranche of aids necessary to overcome the acute debt crisis.(Xinhua/Marios Lolos)
  • A winner of the 36th Miss Bikini International 2011 poses for a photo at the Olympic Sailing Center in Qingdao, a coastal city of east China's Shandong Province, Sept. 29, 2011. (Xinhua/Chen Jianli)
  • Staff members are in position at Beijing Aerospace Control Center in Beijing, capital of China, Sept. 29, 2011. Commander-in-chief of China's manned space program Chang Wanquan announced Thursday night that the launch of Tiangong-1 space lab module was successful. (Xinhua/Rao Aimin)
  • Champion of Miss Bikini from Poland receives trophy at the final of the 36th Miss Bikini International World Competition in Qingdao, east China's Shandong Province, Sept. 28, 2011. (Xinhua Photo)
  • Photo taken on Sept. 28, 2011 shows autumn scenery of populus euphratica forests in Ejina Banner, north China's Inner Mongolia. The populus euphratica forests here, with an area of 390,000 mu, or 26,000 hectares, is one of the world's most famous populus euphratica forests. The golden leaves and sunshines here in autumn is able to attract more than 100,000 person-times annually. (Xinhua/Zhao Tingting)
Hot Forum Discussion