Volvo dealers considering selling Geely models in the U.S.

Geely GE

Volvo dealers remain uncertain about whether the recent acquisition of the brand by China’s Zhejiang Geely Holding Group will mean that their showrooms will be stocked with inexpensive Chinese cars.

On Dec 23, FoMoCo announced that the deal with Geely should be closed sometime in the second quarter of 2010, and some dealers have expressed interest in the ability to sell Geely’s cars in the United States.

While some dealers claim ignorance concerning Geely’s products, being that they are fairly inexpensive vehicles, others still claim that they would remain receptive if certain conditions existed.

Donald Latham, owner of Parkway Volvo in Wilmington, N.C. would be receptive given a certain standard of quality and price; he would have to see Geely’s cars priced lower than those that he currently sells as his business also includes the Hyundai and Subaru franchises.

Shanghai-based analyst Lin Huaibin says that given the existing quality of Geely’s cars and the high standards that exist in the U.S. for safety and emissions, it will take the company approximately five years to develop a car that is ready for the U.S. market.

– By: Stephen Calogera

Source: Automotive News (Subscription Required)