With the Volvo sale from Ford to Geely finally closed and consummated, Geely is losing no time, both in Sweden and in China.
In Sweden, Geely will “pursue investment opportunities” (read: buy other companies in part or in whole), reports Gasgoo, citing sources from the Ministry of Commerce (MOFCOM). When MOFCOM gets involved, then we are talking sizeable deals. According to the report, Geely intends to cooperate with Swedish companies in several sectors, including green cars, alternative fuels, and hybrid technology. Stefan Ostling, an auto project manager from Invest Sweden, says that Geely has already completed tie-ups with Swedish auto technology consulting firms like Semcon and HiQ through equity participation and acquisitions.
In China, Geely plans to convert a nearly completed Geely plant in southwestern China into making Volvo cars, says the Wall Street Journal. Their plan to build a special Volvo plant, along with a separate engine factory in China, remains. However, that will take time, 2 years minimum. Repurposing an existing Geely plant will deliver capacity much faster. Geely is banking on the Chinese market to bring volume to Volvo, and for that, lower cost Chinese manufacture is mandatory.
According to the WSJ, Geely is interested in adding two or three bigger, more luxurious cars to the Volvo’s lineup. These cars are to compete with vehicles like the BMW 7-series.