Volvo takes charge of JVs in ChinaPOSTED BY Nigel Andretti ON 20 August 2015
VOLVO Cars has taken control of its three joint venture operations in China for US$256 million (RM1.05 bn) in order to more accurately reflect its growing presence in the world’s largest car market.
Volvo Cars now owns 50 percent of its China joint ventures alongside Geely Holdings. These joint ventures include its car manufacturing facilities in Chengdu and Daqing; its engine manufacturing facility in Zhangjiakou; and its research and development center in Shanghai.
The move allows Volvo to fully consolidate its China joint ventures, providing a more accurate financial and operational picture of the company as it continues to expand in China, the company said in a statement.
The company’s interim financial results announced this week are the first to incorporate the China joint ventures.
“The incorporation of the Chinese entities is an important step towards the long term objectives to capture the growth and sourcing potential in China,” said Håkan Samuelsson, president and chief executive.
Volvo Cars, which recorded sales of 465,866 units in 2014 in about 100 countries, has been under the ownership of the Zhejiang Geely Holding (Geely Holding) of China since 2010.
It formed part of the Swedish Volvo Group until 1999, when the company was bought by Ford Motor Company of the US. In 2010, Volvo Cars was acquired by Geely Holding.