The Shanghai Securities News has very recently reported Zhejiang Geely Holding Group’s announcement about setting a target to sell about 150,000 Volvo cars in China each year by 2015.
Zhejiang Geely is the holding group for Geely Automobile Holdings. The automobile company is buying Ford’s Volvo segment and has plans to take over it completely by the third quarter (Q3) this year. The news report has further disclosed the plans of the group to carry on, immediately after the sale is concluded later this year, with producing the Volvo XC60 crossover in China.
The group is set to commence production of the Volvo S60 by 2011. Nevertheless, Zhejiang Geely is yet to finalize on a location for the China plant of Volvo. The capital Beijing, Chengdu in the southeast and Ningbo in the east are in consideration as good location options for the plant.
Ford’s China car venture with Changan Automobile Co. and Mazda Motor Corp., at present is responsible for the manufacturing of the Volvo S40 and S80 models. The Shanghai Securities News has also divulged that the S40’s production would be concluded in the future without referring anything about the outcome of the S80.
The group has not yet commented on this report. It can be recalled that last March, The Zhejiang Geely holding group had signed and sealed a purchase deal with Volvo for over $1.8 billion in March last year, making it the country’s biggest overseas auto purchase.