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Geely to make 300,000 Volvos a year in China
A worker at a Geely factory in Ningbo that may produce Volvo cars in the future

Geely to make 300,000 Volvos a year in China

Published: 26 Jan 2010 14:37 GMT+01:00
Updated: 26 Jan 2010 14:37 GMT+01:00

Geely aims to manufacture 300,000 cars a year in China, but intends to keep Volvo’s Swedish operations intact, according to plans the company has presented to Chinese authorities.

Geely said it plans to make Volvo profitable by 2011 by producing large numbers of cars at a factory in Beijing, but still wants to keep Volvo Cars’ production facilities, head office, and development division in Sweden.

The plans are contained in a document which Geely has handed over to Chinese authorities who must approve the deal, the Reuters news agency reports.

The Chinese automaker expects to complete an initial agreement to buy Volvo Cars from Ford in February, and to have the deal finalized by May.

The price is expected to be between $1.5 and 2 billion, according to Reuters.

The document given to Chinese authorities includes plans for Geely to build a new factory near Beijing with the capacity to produce 300,000 Volvo-branded vehicles a year.

While Geely wants to keep the “core value” of Volvo’s brand unchanged, it will seek to improve it “with the development in emerging markets” and by adding “fashionable, dynamic and passionate international elements”.

On Tuesday afternoon, a group of representatives from four different unions from Volvo Cars in Gothenburg, as well as a compensation consultant, departed for Shanghai.

“We hope to get answers to a lot of questions they haven’t answered yet, like how the financing looks for operating Volvo into the future. And we also want a promise that development and manufacturing will remain in Gothenburg,” Mikael Sällström, chair of Volvo’s IF Metall chapter, told the TT news agency.

Unions have previously expressed their concerns about Geely as Volvo’s new owner, both due to fears about jobs moving to China and because of the risk that suppliers may restrict Volvo’s access to the latest technology due to fears that it will be copied

TT/The Local (news@thelocal.se)

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Your comments about this article

15:27 January 26, 2010 by rumcajs
Doesn't smell good to me....
16:45 January 26, 2010 by saabdude
Gee...can't wait to get my hands on one of those "Made in China" Volvos.

If they manufacture Volovs the same way they manufacture most other things...I feel VERY sorry for anyone who buys one.
18:36 January 26, 2010 by zhqwang
I think that Volvo are car of Sweden for ever. I wish that people of Sweden buy and love Volvo's car like in the past.Volvo's car made in Sweden would be sold in the Western countries and USA. Variarion of Volvo's car would be sold in the rest.

Now I have one quetion:

Do you buy and love Volvo's car made in the Sweden if Geely bought Volvo?
20:23 January 26, 2010 by Marvino
I am really amuzed to read the nonsense that Geely will keep the "core value" of Volvo's brand unchanged, BUT will improve it...What a joke..I only hope FORD will realize that it is not in their long term interest to sell Volvo, and cancel the negotiations with Geely. Unless they do so, they will loose the European market forever, and start learning how to it rice with chop sticks...
12:34 January 27, 2010 by linuxcity
@saabdude:

Then you should probably feel sorry for yourself too because most of the products you are living on nowadays are made in China. From towel, buttons to telecom network switcher, the living quality has been improved due to the cheap resource in China. And as far as I can remember, people had the same criticism when Japanese goods started to dominate the world. I am not saying China can output its value as much as Japan in a nearly future. But at least there is a possibility.
12:36 January 27, 2010 by Hamish
Next headline:

Geely moving everything to china from 201. due to the pure fact that they can produce the product faster and for a lot cheaper in china.....

it will happen they just say they will keep the Swedish division i put money on it they will want the whole operation in china at the end of the day
14:52 January 27, 2010 by djmarko
Guess where your Nokia phones, Iphones, Sony Ericsson, clothes like H&M, Nike, Adidas and at least 50-70% of manufactured goods are made??? China!! It is more of a cost issue than anything else, The Chinese will soon dominate the world market for manufactured goods, seems they are pretty much close, The Chinese bailed out Volvo as far as i am concerned, they have the resources and probably the technical know how, its just a pity jobs will be lost in Sweden, thats what globilization is all about!!! think we better get used to the asians taking all our jobs!!!
20:40 January 27, 2010 by saabdude
@ linuxcity

No...actually...I go out of my way to NOT buy things made in China. I read labels, and pass on goods from China when at all possible, to buy similar goods from some other country. Even if I have to spend more money.

Case in point...purchased snow tires and wheels from a company recently, only to find out the wheels were made in China when I unpacked them. Sent the lot back and made sure the next wheels were made in Germany, due to their strict government regulations on automobile wheel construction.
01:12 January 28, 2010 by zhqwang
It is OK.It is no value to continue talk about the question. We will think it based on the Fact.

I am Chinese, Please talk about anything for China according to what you saw,or read in the believable news,journal....
15:05 January 28, 2010 by spy
As an aside they still eat dogs in China. I like dogs and I like Volvo, this whole situation is just cruel.
17:51 January 28, 2010 by rumcajs
@ linuxcity

What saabdude said makes some sence. I buy alooot of chinese stuff, but they are so cheao that I don't care if they brake in 6 months. Also some of those are just made in China, but the Chinese factory has to meet some standards of the Brand that many times is not Chinese.

In this case the owner is Chinese and the cars would be made in China.... and a car is a quite expensive thing. I hope the Swedish made ones will keep the same quality,... in that case I wouldn't buy them less than before all this mess.

@zhqwang

I am sorry if I offend you with this mate, it's not racism or anything, but the quality of Chinese stuff is not realy good in general... the same as many things from my country too.
19:02 January 28, 2010 by Brucelee@stockholm.sweden
Not buying "made in China" will not stop us. It is true sometime quality of some items are not so satisfied, but it worth that cheap price isn't it, on the other hand quality is improving all the time.

For such a long time western media is hiding true china from you, what you see is only edited,selected channel, it is true small part of uneducated Chinese may eat dogs meat because of some Superstitious belief or believe it has medical effect, that is only due to bad education in some area, and on the other hand people eat everything in the world as well as in wester countries.

Before you choose an opinion, try to see and understand the truth.

I suggest you save a couple of thousands Kronor and buy yourself a flight ticket go China and see everything yourself, and not only see the bad side, see it as a whole picture.
21:40 January 28, 2010 by Horace
I think everyone should stop speculating on the quality of Volvo's in the future and just wait for the Chinese Volvo's to come out. My feeling is that, if Swedes want a good future for Volvo, and that news has been broken that Geely has bought Volvo, shouldn't the proper response be cheering for Geely to make Volvo better, instead of posting words of discouragement? I'm still a student but I've worked with enough team projects to know that yelling at another student to work harder has the opposite effect of my intentions.

It is true that a lot of the goods coming from China are of poor quality, it cannot be denied that quality has been increased in the past several decades. Almost all laptops are made in China, good or not. Some high end composite bike frames are also made in China.

I think if people keep speculating on how bad Volvo will be, the western press is just going to dig it in that direction even more. I have a feeling that even if the Chinese Volvo's turned out to be of great quality, as soon as one of them gets into a crash, the headlines will make it sound like the car is made of milk bottles.
21:45 January 28, 2010 by spy
Brucelee@stockholm.sweden

HAHAHAHA!

I love it when you say: 'For such a long time western media is hiding true china from you, what you see is only edited,' because the Chinese media is not exactly free is it?? In fact if you were in China you may not even be able to visit this website due to state restrictions on the web. But frankly the reality does not matter what does matter is that China is perceived to sell cheap goods of inferior quality and this does not fit well with anyone looking ot buy a premium car like Volvo.

And I think you shold stop eating dogs as it is cruel.
15:12 January 29, 2010 by morchad
go look around your house and you may have trouble finding what is NOT made in China..... you will find most of your premium brands are already made there.
22:42 January 29, 2010 by Coalbanks
The same was once said of Japanese & Korean products.
04:49 February 1, 2010 by zhqwang
@spy

It is right in China to eat meat of dogs. I ate meat of dogs when I was about ten years old because We are very poor and short food. Now I don't eat it because We are some rich. I ask you that what you eat when you havn't food and very hungry. Now I can tell you that there are only a fat lot people to eat dogs.

I think that it is clear and right that the bad things belong to China,But don't forget that there are 1.3 billion people. Your country has only have ten million population.
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