When China’s Zhejiang Geely Holding Group takes over FoMoCo’s Volvo next year, it will leave the Swedish luxury brand untouched. According to Li Shufu, the founder and chairman of Geely, Volvo’s production, research and development facilities, union agreements and dealer networks will be left intact.
“If the deal succeeds, nothing will change for Volvo, except the boss turns to Li Shufu,” Li said. “Volvo and Geely will be two independently-managed brands.”
Li said that Geely’s purchase of Volvo will help his company develop new energy vehicles, and that Geely would help Volvo reduce production costs and expand in the Chinese market.
“But based on current investment in research and development, China will be left far behind the pace of developed countries,” he said.
Ford announced last week that it has settled all substantive commercial terms to lead to the sale of Volvo to Geely. The sale is expected to be completed in the second quarter of 2010.
– By: Stephen Calogera