Changan Ford Mazda to continue Volvo production

Shanghai, December 25 (Gasgoo.com) After Ford's Volvo unit is sold to Geely in China, the U.S. auto giant's Chinese venture Changan Ford Mazda Automobile Co will continue producing Volvo vehicles, SinoCast reported yesterday, citing a Changan Auto executive.

According to an earlier contract, Changan Ford Mazda, a passenger car joint venture between Changan Auto, Ford Motor and Mazda Motor, will not stop the production of the Volvo S40 until 2015 and of the Volvo S80 until 2018, said a publicity manager of Changan Auto. Volvo's auto parts supply will not stop, either.

Earlier this week, Ford and Geely agreed on most terms for selling the U.S. automaker's Volvo Car Corp to China's largest private automaker in the second quarter next year. Geely is planning to build a Volvo factory in China. The plant, maybe located in a Beijing suburb, will produce 300,000 vehicles a year.

Changan Ford Mazda, based in southwest China, has also come into the spotlight with Geely's Volvo deal. Industry analysts wonder whether Changan Ford's Volvo production will be merged into the upcoming Geely Volvo project.

Geely said earlier this month that it will seek more acquisition opportunities and is interested in the current China operations of Volvo Car, which produces Volvo S80L and S80 sedan models at Changan Ford Mazda.