Geely-Volvo China HQ to be located in Shanghai

Shanghai, June 13 (Gasgoo.com) Yesterday, Chinese media reported that Geely-Volvo (China) headquarters will probably be located in Shanghai's Jiading Industrial Zone, and the China plants will be built in Shanghai's Jiagding District and Heilongjiang province's Daqing city.

Zhejiang Geely Holding Group signed a deal at the end of March with Ford Motor Co. to acquire the U.S. auto giant's Volvo car unit for $1.8 billion, and since then there have been many guesses about where Volvo's China plant will be established.

However, Geely Chairman Li Shufu denied the earlier report about Volvo's Shanghai plant by saying:" I do not even know where the plant will be, how could they tell?"

A staff member from one auto-making company in Shanghai's Jiading District confirmed yesterday that Geely is currently looking to recruit new staff in Shanghai Jiading Industrial Zone and is making advances to technical staff in a few of auto-making companies or branches in Shanghai.

Moreover, business registration information shows that Shanghai Jili (Geely) Zhao Yuan International Investment Co., Ltd. was registered in the industrial and commercial bureau of Shanghai's Jiading District with registered capital of 20 mln yuan ($2.9 million) on February 24 this year.

Besides, Beijing Geely Wanyuan International Investment Co., Ltd. and the new Geely-Volvo ((Jia-Er-Wo in Chinese) company were the shareholders. The former contributed 17.53 million yuan, holding 87.65% stake in Geely Zhaoyuan Company and the latter contributed 2.47 million yuan, holding 12.35% stake in it.

It is reported that the nation's authorities will consider Volvo's overseas operations when making a decision on whether to approve the Geely-Volvo production in China or not.

Additionally, recent research over the subject by Gasgoo.com shows that nearly 80% of industry insiders believe that the possibility for Geely-Volvo headquarters to be located in Shanghai is very good.