Geely to close Volvo deal by May

• Source: Global Times
• [16:06 January 26 2010]
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China's Geely Holdings, parent of Hong Kong-listed Geely Automobile, will produce 300,000 Volvo vehicles a year at a new factory in Beijing, and reach an annual production capacity of 900,000 units within five years, according to Reuters, citing a source today.

Geely Holdings plans to complete the deal with Ford to acquire the American automaker's Volvo unit for $1.5 billion to $2 billion by May, and then pull the Swedish brand out of the red by 2011, according to the source and to a document submitted to regulators by Geely and reviewed by Reuters.

The expansion of Geely's capacity would double Geely's current production, which reached 321,900 units in 2009 for the entire group, which was also up 45 percent year-on-year. Geely has set an annual sales target of 2 million vehicles by 2015.

Agencies and Shi Jierui contributed to this story