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Geely pumps cash into Volvo

2011-11-11 12:07

MOVING UP: Volvo's You concept was shown at the 2011 Frankfurt auto show.

Geely plans to invest a total of 10.5 billion US dollars (R84 billion) in Volvo Cars, acquired from Ford in 2010 for $1.8 billion.

While there were concerns head of the sale that the union would suffer organisational problems and Volvo’s safety reputation would suffer, this was avoided, Geely said in a statement, through “planning and effective management”.

Volvo Car employees were allowed to continue to manage and operate the Swedish car unit and, with Geely’s input, have succeeded in turning the loss-making brand into a profitable operation, despite the recent European economic slump.


Li Shufu, chairman of Geely said: “The acquisition of Volvo Cars allows for collaboration and co-operation between an eastern enterprise and a western enterprise and it also effectively links the market in the East with that in the West.”

The two automakers have integrated their organisational, marketing and cultural resources and, leveraging their respective advantages in sales, research and development and services, laid the foundation for their future growth, Li added.

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