Volvo to Stay in Sweden
The Chinese car manufacturer, Geely, plans to build 300,000 Volvo cars per year in China but will keep the company's Swedish headquarters, research centre and manufacturing facility intact. According to documents presented to the Chinese government, the estimated $2 billion sale by Volvo's US owner Ford will be completed by May this year, reports news agency Reuters.
Geely intends to turn around the loss-making company, and make it break even by 2011, by doubling current production using an additional factory in Beijing as well as targeting growth markets.
The Hong Kong listed company has set ambitious annual sales targets of 2 million cars by 2015 by which time it expects to reach profits of more than 700 million dollars.
According to the leaked documents, Geely aims to "keep the core value of Volvo as a luxury brand unchanged, while improving it by developing in emerging markets, and adding more fashionable, dynamic and passionate international elements".
A spokesperson for Geely declined to comment on the information.