Geely to double Volvo output with China plant: source

• Source: Global Times
• [00:28 January 27 2010]
• Comments

China's Geely Zhejiang Holdings will nearly double Volvo's annual global production with a new factory in Beijing as part of its plan to pull the Swedish automaker out of the red by 2011, a source said Tuesday.

Zhejiang Geely, parent of Hong Kong-listed Geely Automobile, aims to complete the purchase of Ford's Volvo unit for up to $2 billion by May, according to an industry source who obtained a copy of the plan but wasn't authorized to talk about it publicly.

Geely, China's largest privately owned car maker, plans to produce 300,000 Volvo branded cars at a new factory in Beijing, according to the document seen by Reuters, almost doubling its own 2009 output.

The deal would see Geely acquire Volvo for $1.5-2 billion, with an expected closing date in May after the signing of the initial agreement next month, according to a copy of the Geely document.

Reuters