Currently reading: Geely plans new Volvo models
Chinese firm plans three new luxury models to boost worldwide sales
Autocar
News
1 min read
11 November 2009

Geely plans to launch up to three new luxury Volvo models within four years of taking over the firm from Ford, according to company sources.

Sources close to the Zhejiang Geely Holding Group, which is Ford’s preferred bidder for Volvo, told the Wall Street Journal that the firm would sell two or three bigger, more luxurious cars within the next four years to try and boost global sales.

As part of Geely’s restructuring plan for Volvo, it plans to boost global sales to more than one million units per year. Volvo’s current sales are around 400,000 units per year, but Geely plans to more than double this number within five years.

To achieve this, it plans to build a new plant in China with the capability of producing 300,000 units per year. The firm predicts that Volvo could sell up to 200,000 units per year in China a year. Last year, it sold 12,600 units.

Geely’s offer for Volvo is believed to be around two billion euro (£1.2bn), but the sources claim the sale will be long and drawn out due to issues over intellectual property rights.

The issues are what Ford intellectual would transfer to Volvo and how Ford would continue to use Volvo intellectual property, including its pioneering safety technology. The two will also decide how to sort out any future intellectual property issues, which may occur later.

Twitter - follow autocar.co.ukSee all the latest Volvo reviews, news and video

Advertisement
Advertisement

Find an Autocar review

Join the debate

Comments
8
Add a comment…
optimal_909 12 November 2009

Re: Geely plans new Volvo models

optimal_909 wrote:

"two billion euro (£1.2bn)"

Rather £1.8bn.

Or two bn USD...

optimal_909 12 November 2009

Re: Geely plans new Volvo models

"two billion euro (£1.2bn)"

Rather £1.8bn.

sinewell 12 November 2009

Re: Geely plans new Volvo models

I hope Ford do a GM and decide to keep Volvo - by selling brands to the Chinese, western manufacturers in my view are only putting the first nails in their own coffins. Sure, the Chinese will catch up as the the Koreans have, but why help to vastly accelerate that process and give them the cachet of a reputable brand. Ford still need a brand above the parent company - one day perhaps Ford in Europe might be seen as comparable to VW (although still a mighty long way off in my view!), but there is still a lot of market to capture above this. Premium is still the way forward. In 20 years time, Ford might regret this.

Find an Autocar car review