Geely Automobile Holdings Ltd. has bought Volvo Cars in 2010 and will now bear the fruits of the acquisition, delivering jointly developed cars from 2015 in order to compete on the home front with the foreign brands.
The joint development with Volvo, which built a reputation around safety and reliability, may help polish Geely’s image as the Chinese carmaker seeks to become the country’s largest auto exporter. The company beat analysts’ estimates after it reported yesterday that first-half net income rose 37% to 1.4 billion yuan ($229 million).
“We have entered into actual research and development stage and I believe we can see the new product in the year after next,” Geely Chief Executive Officer Gui Sheng Yue told reporters yesterday at a briefing in Hong Kong, without elaborating on the new vehicle.
Geely’s vehicle sales increased 19 percent to 263,544 units in the first six months, the company said, and maintained its full-year target at 560,000 vehicles. The automaker is also preparing to introduce a series of new-energy vehicles in the coming year to cater to an expected increase in demand, it said in a statement.
Zhejiang Geely Holding Group Co., which bought Volvo from Ford for $1.8 billion in the biggest overseas purchase by a Chinese automaker, signed a memorandum with the Swedish company in March last year to “leverage its full access” to technology to develop vehicles. Volvo in February said it would establish a joint research and development center in Gothenburg, Sweden, with Geely.