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CHINA

Geely to sell one million Volvos a year: report

China’s Geely, the front runner to purchase Volvo Cars from Ford, wants to build a factory in China to help increase Volvo sales to one million vehicles, according to US media reports.

Geely to sell one million Volvos a year: report
Volvo production facility in Chongqing

Volvo Cars, based in Sweden and losing money, produced about 400,000 vehicles last year under the ownership of US auto giant Ford, the Wall Street Journal reported on Wednesday.

The report, datelined from Beijing, said that if Geely, currently the preferred bidder, succeeded in taking over the company it intended to boost sales to a million vehicles a year.

It would achieve this partly by building a factory in China to make 300,000 vehicles per year and aimed at the local market, the report said.

Geely also has plans to develop two or three new larger Volvo luxury models in the next three to four years in its bid to boost global sales.

The Chinese automaker reckons Volvo can sell about 200,000 cars a year in China, compared with the 12,600 vehicles sold in China last year.

But a final deal allowing Geely to purchase Volvo from Ford remains a long way off, as the companies continue to grapple with the question of how much technology Ford is prepared to share with Geely, according to the newspaper’s source.

Also unresolved is what rights Ford may have to continue using Volvo’s technology and how the two companies would resolve any future disputes over technology.

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CHINA

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.

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