Geely to announce cooperation with Volvo

Reuters (Hong Kong) - Chinese carmaker Geely Automobile Holdings Ltd said it will announce details of technological cooperation with sister company Volvo Car Corp in 2-3 months at the earliest. 

Volvo Car, owned by Geely's parent Zhejiang Geely Holding Group Co Ltd, would proceed with broad cooperation with Hong Kong-listed Geely in areas such as technology through a dialogue and cooperation committee set up last November, Geely chief executive Gui Shengyue told reporters on Wednesday.

'It's too early to talk about details, but we will make an announcement in two to three months at the earliest,' he said.

Zhejiang Geely bought Sweden's Volvo Car, last August from Ford Motor Co for US$1.3 billion (S$1.6 billion) in cash and an issue of US$200 million notes.

Analysts expect the deal to boost Geely's brand recognition and upgrade the Chinese auto maker's technology.

Geely has decided to take its branding more upmarket with new marques such as the Emgrand range.