Cogo to make GPS navigation for Geely

Chinese industrial software provider Cogo Group Inc. said Thursday it will design GPS navigation systems and other advanced technology for Chinese automaker Zhejiang Geely Holding Group.

Cogo said it will make several applications, including in-car personal computers and automotive black boxes. It didn't say how much the deal was worth, but expects to start generating revenue from the agreement in the fourth quarter.

Geely, one of China's biggest carmakers, bought Volvo from Ford Motor Co. earlier this year. The company has said it hopes to raise sales of its own brands from a projected 400,000 units this year to up to 2 million by 2015, with as many as half sold in foreign markets.

Cogo also makes products for Chinese automaker BYD.

"We recorded our initial auto revenue in the first quarter of 2010, and we expect this business to ramp well over the next several years," Cogo CEO Jeffrey Kang said in a statement.