Geely says not to move Volvo production out of Sweden

Chinese auto maker Zhejiang Geely Holding Group will maintain Volvo cars' production in Sweden, said Chairman Li Shufu.

Volvo will not be Volvo any more if taken out of Sweden, as the brand has its root there, Li said after returning from Sweden, adding that the two brands will be like brothers, rather than father and son.

On Mar. 28, Geely signed a definite stock purchase agreement to hold 100% of Volvo for US$1.8 billion.

The auto maker said in a statement that it intends to keep Volvo's existing manufacturing facilities in Sweden and Belgium.

Geely, which eyes the Chinese market to revive the loss-making Swedish car brand, will also explore opportunities to manufacture Volvo cars in new production facilities to be built in China for the local market.

The takeover of luxury Volvo brand gives China's No.10 auto maker a chance to build up its profile in China, which surpassed the U.S. as the world's largest auto market.