CCTV.com - CNTV English - CCTV News

China's Geely closes Volvo deal

08-03-2010 08:59 BJT

Watch Video

Play Video

The Chinese auto maker, Geely, has completed its 1.8 billion U.S. dollar deal to buy Volvo from Ford. It's the biggest purchase of a foreign car maker by a Chinese company.

Geely's Chairman Li Shufu started out making refrigerator parts and motorcycles. He has since been dubbed the Henry Ford of China. And now, he is set to become the new chairman of Volvo.

Li Shufu, more commonly nicknamed China's peasant auto-tycoon, has ambitious plans for the 24-year-old Geely company. He plans to turn Volvo's fortunes around, by setting up a new manufacturing base in China, doubling the Swedish car maker's capacity to take advantage of the country's vast auto market.

Geely's target is to sell 150 thousand Volvo cars in China annually by 2015. Meanwhile, Volvo's European operations will continue to supply the company's international market.

The global financial crisis has taken a heavy toll on Volvo, denting its sales in recent years. In 2009, the company recorded a pre-tax loss of 653 million US dollars.

Geely says it is prepared to pump up to 900 million U.S. dollars in capital into Volvo. This comes on top of the 1.8 billion that Geely is already paying Ford for the Swedish brand.

Editor:Zhang Jingya |Source: CNTV.cn

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program