Feb. 24, 2012 (China Knowledge) - Zhejiang
Geely Holdings Group, the parent co of Geely Automobile Holdings Ltd<0175
>, said on Wednesday it intends to set up a joint venture with unit Volvo Car Corp in China, adding that more details will be disclosed in two months.
The two sides will each own half interests of the proposed JV, said Zhejiang
Geely Spokesperson Yang Xueliang quoted Chairman Li Shufu as saying.
Shen Hui, chairman of Volvo Car China, noted the JV's first domestically-made model will roll off production line next year.
Volvo Car, acquired by Zhejiang
Geely in 2010, is constructing two plants in Chengdu
Province and Daqing
Province, as well as two engine production bases in Shanghai
and Zhangjiakou of Hebei
Total output capacity of the two plants could reach 198,000 vehicles per year, while the combined annual output capacity of the two engine facilities would total 62,500 units.
Volvo Car targets around 800,000 auto sales for 2020.
Under Chinese rules, a Sino-foreign auto venture cannot manufacture only foreign brand cars in China, but also must produce own brand and new energy cars, sources reported.