China car Geely plans PRODUCER disburse public investment of U.S. $ 11 billion for Volvo. "We want to Volvo and give power back to the brand," said Li Shufu, chairman of Geely Automobile Holdings.
To the German magazine Wirtschafts Woche, Shufu said that Geely will provide U.S. $ 11 billion to build new engine plant, increased research and development and technological improvement.
However, Volvo spokesman Per-Ake Froberg told Reuters that Volvo itself will provide funds through loans and other means.
Regardless of where the funds came from, the investment is intended to encourage the Volvo brand in China market aggressively, in which the Swedish brand has sold about 50,000 vehicles last year.
Geely aims to sell Volvo able to control 20 percent of the premium car market in China within three years with a target of 200,000 vehicles in 2014. This is part of an ambitious plan to double the sales of Volvo in the past 10 years.
In return, Geely will get a new premium brand in China that use Volvo technology and technical skills. In addition, both brands will combine their buying power to get better deals from suppliers.
