Zhejiang Geely Holding Group Co Ltd hopes government will approve its joint venture with Volvo Car in the first half of 2012 so production can start in 2013.
Vice President Daniel Li said he hopes sales of China-made Volvo cars could be launched in 2013. Geely is required to set up a joint venture with Volvo, which hopes to quadruple its sales in China to 200,000 a year in 2015 and has hired New York Knicks basketball sensation Jeremy Lin to help sell its luxury cars in China and the United States.
Geely Automobile Chief Executive Gui Shengyue thinks that a technology transfer deal between Zhejiang Geely and Volvo would give Geely the possibility to make use of full access to Volvo’s technology and make the homegrown auto maker more competitive. Geely already plans to develop a new premium brand for the China market using Volvo technologies but the new brand will later be put under Geely Automobile.
“The relationships between Volvo and Geely Automobile are like brothers and they will not compete with each others as they target different markets,” said Gui Shengyue.
For 2011 Geely reported a 13% rise net profit, bringing its shares up 4%, the domestic sales fell 3%, but exports rose 93% to 39,600 units, which is 9% of its total sales of 421,611 last year.