Volvo Buses lands major order from China

Volvo Buses, along with its Chinese subsidiary, plans to deliever 1,500 buses to a group in Shanghai, China in a deal worth 1.3 billion kronor ($162 million).

Volvo Buses lands major order from China

The deal, signed with Shanghai’s Bashi Group, calls for the buses to be delivered in time for the World Expo, set to open in Shanghai on May 1st, 2010.

“An increase and modernization of the bus traffic is an important part of the venture,” said Lars Blom, ead of Volvo Buses’ China operations, in a statement.

“It involves raising the standard of the bus fleet by purchasing more Volvo buses and a strong investment in environmentally friendly buses from our subsidiary Sunwin Bus.”

According to the agreement, half of the 1,500 buses will be Volvo brand buses, while the remaining half will bear the logo of Volvo’s Subwin Bus subsidiary.

The Sunwin Bus order is to include normal diesel buses as well as electric-hybrid buses which can be charged overnight or while the vehicles come to rest at bus stops.

The Volvo buses’ chassis components are to be are produced in Borås in western Sweden and then sent to Shanghai for assembly at the same plant used for manufacturing the Sunwin buses.

Volvo Bus Corporation is one of the world’s largest manufacturers of large buses is part of the Volvo Group.

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Sweden’s Volvo Cars may merge with Chinese owner Geely

Sweden's Volvo Cars and its Chinese owner Geely announced on Monday that they are considering merging into a single group in order to share resources, but would preserve their separate brands.

Sweden's Volvo Cars may merge with Chinese owner Geely
File photo of a Volvo test-drive. Photo: Christine Olsson / TT

The merged firm “would have the scale, knowledge and resources to be a leader in the ongoing transformation of the automotive industry,” they said in a statement.

“The combination would preserve the distinct identity of each of the brands Volvo, Geely, Lynk & Co and Polestar,” they added.

Geely bought Volvo in 2010 from Ford which hadn't been able to turn around the Swedish automaker. But under the Chinese firm Volvo has rebounded and smashed its sales records.

Volvo sold more than 705,000 vehicles in 2019, besting the record it set in 2018 by 10 percent, and the automaker expects continued growth this year.

The statement said the firms would create a joint working group to prepare a proposal for the boards of both firms.

“A combined company would have access to the global capital market through Hong Kong and with the intention to subsequently list in Stockholm as well,” it added.

Volvo put off a share listing in 2018 due to tensions in global markets.