Shanghai — Swedish car maker Volvo has announced moves that will deepen co-operation with its Chinese parent, Zhejiang Geely Holding Group — a tie-up that seems likely to show that China can make a success of buying consumer brands. Volvo’s global CE, Hakan Samuelsson, and Geely chairman Li Shufu said the two firms would soon start producing cars at a joint plant in Taizhou, in eastern Zhejiang province. The plant, operated by Volvo and expected to start gradually ramping up production this quarter, will produce compact cars based on an "advanced" vehicle architecture the two companies have developed jointly in Sweden. Volvo and Geely are expected to produce small cars at the plant based on that compact modular architecture (CMA) platform — for domestic and export markets. Volvo is trying to create "synergies and economies of scale", Samuelsson said in Shanghai on Wednesday, "by sharing development-intensive components: engines, transmissions, suspension parts and brakes", and by sh...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.