Geely planning to sell 1 million Volvo vehicles annually, considers new China plant

Zhejiang Geely Holding Group, which plans to purchase FoMoCo’s Volvo brand, has been working on a turnaround plan that will eventually double sales of the Swedish car brand to nearly 1 million vehicles a year. Under the plan, Geely is going to build a new plant for Volvo in China with an annual capacity of 300,000 vehicles, making use of China’s market potential and cheap labor.

Geely Automobile Holdings Ltd. of Hong Kong will also add two or three bigger and more luxurious models to Volvo’s lineup within the next three to four years.

The Chinese automaker is planning to sell 200,000 units a year in China, up from 12,600 units sold last year.

It forecasting selling nearly 1 million cars a year globally within the next four to five years – as compared to the recent annual sales of 400,000 units a year.

Last month, Ford confirmed Zhejiang Geely Holding Group is its preferred bidder for the possible sale of Volvo Car Corporation.

– By: Stephen Calogera

Source: Reuters