Volvo to control Chinese operations
Volvo will acquire Geely’s share in their joint venture in China with the longer-term aim of taking full ownership of its car manufacturing plants and sales operations in the country.
The acquisition of an additional 50% of the shares in Daqing Volvo Car Manufacturing and Shanghai Volvo Car Research and Development will strengthen Volvo’s position in China, its largest market.
Håkan Samuelsson, chief executive of Volvo Cars, said: “With this agreement, Volvo Cars will become the first major non-Chinese automaker with full control over its Chinese operations.
Geely chief executive officer Daniel Donghui Li said: “Geely Holding Group and Volvo Cars are continuously evaluating the best way to collaborate and structure operations within the wider group. These two transactions will create a clearer ownership structure within both Volvo Cars and Geely Holding.”
The transactions will be completed in two steps, starting in 2022 when the joint venture requirement for auto manufacturing in China will be lifted, and expected to be formally completed in 2023.
