Geely announces $11 billion investment in Volvo
Volvo is poised to rapidly inflate its presence in China, and it believes the way forward is through an $11 billion spending plan. “We want to revive Volvo and give the brand its strength back,” says Li Shufu, Chairman of Geely Automobile Holdings. Speaking with German magazine Wirtschafts Woche, Shufu disclosed that Geely will put up $11 billion for a new engine factory, increased research and development and technology upgrades.
In China 2011, this Swedish brand sold about 50,000 cars. Geely wants Volvo to account for 20 percent of the premium car market in just three years(!) with a target of 200,000 vehicles for 2014.
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