After its purchase of Ford Motor’s Volvo unit is completed, Geely will establish its Chinese headquarters in Beijing, according to Search-Autoparts.com. And the Chinese carmaker has announced its plan to build a Volvo factory in Beijing.
Previously, Geely Chairman Li Shufu confirmed that Volvo would have two local markets in the futuren – China and Sweden, indicating that Geely would set up its new domestic headquarters in Beijing. Currently Zhejiang Geely Holdings Group is headquartered in eastern city of Hangzhou.
Sources said that two companies related with Geely Group are registering with the Beijing Administration for Industry and Commerce. They are expected to be instrumental in Geely’s final acquisition of Volvo.
In October, Ford and Geely reached an initial agreement on the Volvo deal. A definitive agreement is expected to be signed this month, with the transaction to be completed in May after receiving regulatory approval.
Geely will establish an international investment company in Beijing with initial registered capital of about $1.3 billion, boosted to $2 billion later this year for buying Volvo. An investment firm will also be built in Sweden to acquire the 100% stake in Volvo.
Geely Group is planning to build a Volvo plant in Beijing to nearly double the Swedish brand’s annual global output to 300,000 cars, as part of its plan to pull Volvo out of the red by 2011, media said last week.