Geely's clean-energy car to use Volvo technology

Shanghai, April 21 (Gasgoo.com) Geely Automobile Holdings Ltd., whose parent has signed a deal to buy Ford Motor's Volvo car brand, will build a clean-energy vehicle production base in central China's Shanxi province, where Geely will use Volvo technology in green-car production, SinoCast reported today, citing a local official.

In this production base, Geely Auto will adopting the cutting-edge green-energy technology from Volvo Car. Geely is planning to build its own brand by using the introduced Volvo technology while maintaining the independent operation of the acquired Swedish carmaker.

Under the agreement between Geely Holding Group and Ford Motor, Geely will have access to Volvo's sedan technology and have the right to use partial technology from Ford. Analysts said Volvo's technology, rather than its brand influence, is what Geely needs most from this deal.

Ford and Volvo spent tens of billions of dollars in the research and developemtn of renewable energy technology in the past ten years, which will help Geely catch up with global peers in the green energy car field, said Geely chairman Li Shufu.

Geely hasd decided to build a Volvo car plant in China after the acquisition and will operate the Geely and Volvo units separately. The Shanxi plant will be a base for Geely to produce its own-brand clean cars using Volvo technology.