Volvo Cars buys out Geely to take over Chinese operations

Geely-owned Volvo Cars announced in a recent press release that it will now be taking full ownership of the brand’s Chinese operations through a signed agreement with its parent company.

“With this agreement, Volvo Cars will become the first major non-Chinese automaker with full control over its Chinese operations,” said Volvo Cars CEO Håkan Samuelsson.

By buying out its parent company from their joint ventures in China, Volvo Cars will now be in charge of both the car manufacturing plants and sales operations in the country.

“Geely Holding Group and Volvo Cars are continuously evaluating the best way to collaborate and structure operations within the wider Group. These two transactions will create a clearer ownership structure within both Volvo Cars and Geely Holding,” said Geely Holding CEO Daniel Donghui Li.

The turnover will involve a two-step process. The first step starts in 2022 when the joint venture requirement for auto manufacturing in China will be lifted, according to Volvo Cars.

In addition, the transactions between both companies are still awaiting regulatory approval.

Volvo Cars have acquired an additional 50 percent of the shares in Daqing Volvo Car Manufacturing Co., Ltd and Shanghai Volvo Car Research and Development Co., Ltd which further strengthens Volvo’s foothold in the Chinese car market.

Photo from Volvo

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