Volvo Has Found First Joint Venture, Geely Holds 70% Shares

Volvo has found its first joint venture in China—Daqing Volvo Automobile Manufacture Co. LTD. The company registered capital is 1.66652 billion Yuan, and Zhiyuan Tong, Volvo China CEO, takes president of Daqing Volvo. The plant will go into operation within this year.

As it known, Volvo Automobile Group takes 30% shares of Daqing Volvo Company, and Geely takes other 70% shares. However, Geely actually holds 100% share of Volvo Automobile Group. Relevant people take a vivid example that Geely president Shufu Li has taken money from both sides of his pocket, and funded Daqing Volvo together.

According to introduction by Zhiyuan Tong, Daqing Volvo is positioned as production base Northeast China of Volvo, which faces domestic and overseas market. The first phrase project is planned for 80 thousand annual capacity the same as Chengdu plant. Capacity includes new energy hatchback, sedan and SUV. It means Daqing plant can export auto, which is marked on business license as well. Meanwhile, Daqing plant has imported accessories, and able to provide after sale service for vehicle. Inner people said that compared with Chengdu plant, Daqing production base even has development capability.