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Changan to continue Volvo production after Geely deal

George Gao From Gasgoo.com| July 09 , 2010 16:00 BJT

Shanghai, July 9 (Gasgoo.com) As Geely is set to compele its acquisition of Ford Motor's Volvo car units, Ford's Chinese partner Changan Auto said this week that joint venture Changan Ford will continue to build two Volvo models as before, media reported yesterday.

Earlier reports said that after buying Volvo from Ford, Zhejiang Geely Holding Group will fully be in charge of the operation of Volvo and production of the Volvo S40 and S80L models may be stopped at Ford's Changan venture and may be merged into the future Geely-Volvo operations.

After the European Union on Tuesday approved Geely's buy of Volvo, Changan Auto announced that Changan Ford will continue to make the two Volvo car models, and the corporation between Changan and Volvo will not stop, either, as the two companies' contract will continue.

According to an existing contract, Changan Ford Mazda, a passenger car joint venture between Changan Auto, Ford Motor and Mazda Motor, will not stop the production of the Volvo S40 until 2015 and of the Volvo S80 until 2018, said a publicity manager of Changan Auto.

Sources also said that the new-generation Volvo s60 model will be introduced to China by Changan Ford for local production and the contract for this new model's Chinese production will also last for 10 years, which means Volvo's cooperation with Changan will continue.

Geely Group, new owner of Volvo Car, said yesterday that it has decided to locate Volvo's China headquarters, R&D center and production base in Shanghai's "auto town" in Jiading district. A local official has confirmed this decision of Geely.

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