Volvo sees opportunities in China after sale to Geely

Shanghai, January 15 (Gasgoo.com) Volvo Car Corp. CEO Stephen Odell said his company's sale to China's Geely Group could create opportunities for the Swedish auto maker in the booming Chinese auto market, now the world's biggest, wardsauto.com reported.

"You have to believe that if you are owned by a Chinese manufacturer that would bring a whole lot of benefits," Odell tells Ward's at the North American International Auto Show in Detroit.

In October 2009, Ford first picked China's Zhejiang Geely Holding Group the preferred bidder for its Swedish unit Volvo and in December announced "all substantive terms relating to the potential sale have been settled," with the deal to be completed in the second quarter.

Odell says the transaction is not a done deal, but it is poised to move forward under Geely ownership. Ford acquired Volvo in 1999 for $6.35 billion. Geely earlier said it was raising $1 billion in loans to finance its $1.8 billion bid for Volvo.

Odell says Volvo, if under Geely ownership, should be able to substantially increase its presence in the market, predicting the automaker could sell "a lot more than 30,000 units a year." He's intrigued by the Chinese fondness for luxury cars.

The Volvo CEO added that he is told Geely will keep Volvo's manufacturing facilities in Sweden and Belgium. However, capacity could be expanded at a Geely facility. Geely is reportedly planning to set up a Volvo plant in China.

Source: Ward's Auto (via chinaautoreview.com)