Geely Says It Will Not Produce Volvo Brand Cars

After the announcement that Zhejiang Geely Holding Group module push through with the $1.8 billion purchase of the Volvo brand from Ford Motor Co., Geely clarified that it won’t be producing Volvo brand cars.

China’s biggest clannish car maker also said that Volvo won’t be making Geely brand cars as well. As soon as Geely Chairman Li Shufu returned from Sweden, he told reporters that since Volvo is from Northern Europe and has its roots in Sweden, Volvo module not remain as Volvo if taken out of the area. Li described the relationship between Geely and Volvo module soon be “like brothers, not father and son.” The name Geely is translated to auspicious or lucky in Chinese. Geely is relying on its home mart to revitalize the struggling Volvo brand. Li also said that there are plans to double Volvo’s creation by creating a major plant in China. The advantage of owning a global brand like Volvo is that Geely gets the opportunity to build up its profile in China. Geely is actually better known for making small, inexpensive cars, but with this acquisition, it intends to catch up with bigger state-owned rivals that have affiliated themselves with big carmakers like General Motors Co. and Volkswagen AG.