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Volvo suitor Geely resumes trading

Chinese automaker Geely resumed trading of its Hong Kong-listed shares on Tuesday afternoon following confirmation of strong sales figures announced on Monday.

Geely Automobile Holdings, which suspended trading in its shares on Tuesday morning, said in a filing to the Hong Kong Stock Exchange that statements made by its executive director Lawrence Ang to the media after a shareholders’ meeting on Monday are “accurate.”

Ang told media on Monday that the company had set a sales target of 400,000 vehicles for 2010, representing a year-on-year growth of about 33 percent.

The group had sold around 250,000 vehicles in the first 10 months of this year, meeting its sales target, he said.

He also said that the listed company would be interested in the Chinese operations of Volvo, if its parent company is successful in acquiring the troubled carmaker, according to a Dow Jones Newswires report.

Ang added that his company is on the lookout for potential acquisitions, especially makers of car engines, the report said.

The company’s confirmation of strong car sales on Tuesday sent its share price up six percent to 4.59 Hong Kong dollars ($0.59 US) shortly after it resumed trading at 0630 GMT.

Reports said US auto giant Ford picked Zhejiang Geely Holding Group, Geely Automobile’s unlisted parent, in October as its preferred bidder for money-losing Volvo, which is based in Sweden.

Geely said last month it had reached an agreement with Ford to buy the intellectual property rights to Volvo’s key technologies, including those related to safety and the environment, the reports said.

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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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