Geely to launch three models in Russia in'11

Shanghai November 26 (Gasgoo.com) Zhejiang Geely Holding Group, the new owner of Volvo Car Corp, will launch three new models in Russia in 2011, including an urban crossover, a D-Class saloon and a compact hatchback of B-class, according to a Russian media report Wednesday.

The three models will initially be imported from China and then be assembled at the Russian automaker Derways' plant, where Geely's MK model was built earlier.

According to Xinhuanet, the Derways plant has also manufactured vehicles for other Chinese manufacturers such as Great Wall Motors, Li Fan, Chery and Haima. The factory's total annual output is estimated to reach 100,000 units.

According to data released by Russia's EBA, Geely sales fell by 79% in the first ten months this year to 1,459 vehicles in the Russian market, where the automaker sold only 13 vehicles in July.

Such poor sales performance has left Geely no choice but to end its partnership with the country's largest foreign-auto-brand dealer, Rolf. In addition, Geely plans to set up a sales company in Russia trying to turn the table around. It had already sent a delegation to negotiate the matter with Derways in August.