Zhejiang Geely Eyes Volvo Partner in the West

Citing a Bloomberg News interview with Volvo’s CEO Stefan Jacoby reported on 21 June 2012, the Swedish automaker Volvo Car Corporation owned by Chinese manufacturer Zhejiang Geely Holding Group is looking for a partner to build vehicles in North America.


Zhejiang Geely bought Volvo from Ford Motor in August 2010 for US$1.8 billion (S$2.3 billion), well below the US$6.5 billion the Michigan automaker paid for Volvo in 1999.


The United States remains Volvo’s biggest market. Last year, Volvo sold 67,273 cars in that market, an increase of 25 per cent from the previous year. Sweden is its second-largest market and China the third, but fastest-growing, market.


Jacoby was quoted as saying in the interview that in the medium term of five to six years, they need to find a proper solution in North America though building a plant itself is less likely.


“I’m looking for a partner that could help us utilise a North American plant,” he added.


Though he declined to name them, Jacoby told Bloomberg that the carmaker is talking to a ‘couple’ of manufacturers. He also said Volvo is open to everybody as a partner, including Fiat.


A Volvo spokesman confirmed to Reuters that the CEO had made those statements when speaking with Bloomberg at the Automotive News Europe World Congress conference in Monaco.

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