Geely to boost Volvo annual China sales to 150,000 by 2015

Shanghai, June 25 (Gasgoo.com) Ever since 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, all the attention has been given to the Volvo brand's future in China in the industry.

Facing the extraordinary challenge to make the Volvo brand one of the successful and profitable luxury car brands in China's auto market, Geely has now worked out a five-year plan for the development of the Volvo brand in China. Under the plan, Volvo China annual sales will reach 150,000 units by 2015, a person familiar with the matter said today.

Geely will expand the Volvo line-up with more Volvo vehicles to increase the Volvo sedan sales in China. In the third quarter of this year, it will bring the Volvo SUV XC60 into China for local production, followed by the Volvo S60 sedan to be produced in the second quarter of 2011. While production of the Volvo S40 sedan at Geely's Chongqing plant, located in South Central China's Chongqing municipal, will be halted, the same person revealed.
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In addition, Geely president Li Shufu said in the plan that he will establish a new Geely group, which will run the Geely vehicle business, the Volvo vehicle business and the rest Geely's business like real estate, colleges, ect., separately.

As for the production base for Volvo, several Chinese cities such as Beijing, Ningbo, Chengdu and Shanghai will all have a chance to compete, and Shanghai will most likely to be chosen, according to recent news.

In view of Volvo's 108% sales growth in the first five months of this year in China, Li Shufu confidently said that Volvo is expected to become profitable in two years.

At present, China's National Development and Reform Commission (NDRC) and the State Council are considering the due diligence and the expected plan, submitted by Geely, for the development of the Volvo brand. The possibility of getting the approval is quite good, and Ford is also waiting for the approval from the European Union, media reported.