According to a report by the Financial Times, Geely will leave Volvo as is and will run it as a separate entity to protect the Swedish brand’s luxury image.
“We want to be careful not to damage the Volvo brand,” said Freeman Shen, Geely’s vice president for international operations. “We don’t want the image of a luxury car made in a third world country. We want the image of a European luxury car, albeit owned by a Chinese owner.”
Shen said that Volvo will be in good hands since Geely has “100 years of automotive history” and since its boss is more flexible in trying new ideas. He also said that Geely is considering setting up production in China and that 10 provincial and municipal Chinese governments are offering the automaker incentives to build a plant in their area.
Geely is hoping to finalize its $2 billion purchase of Volvo from FoMoCo by Feb. 14.
– By: Kap Shah