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Volvo Cars to take full ownership of its Chinese manufacturing and sales operations

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Volvo Cars has signed an agreement with its parent Geely Holding to acquire Geely Holding’s stake in the companies’ joint ventures in China, with the aim of taking full ownership of its car manufacturing plants and sales operations in the country.

The acquisition of an additional 50 per cent of the shares in Daqing Volvo Car Manufacturing Co., Ltd and Shanghai Volvo Car Research and Development Co., Ltd, will further strengthen Volvo Cars’ position in China, its largest market, and maximize exposure to one of the fastest growing regions globally.

Although the two joint venture companies are already fully included in Volvo Car Group’s financial statements,  Volvo Cars’ share of their net income and equity will increase following the transaction.

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

“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 chief executive officer, Daniel Donghui Li.

Volvo Cars has grown significantly faster than the average market in China in recent years and will continue to invest in the country to maintain the strong growth trend. Following the transactions, Volvo Cars will have full ownership of its manufacturing plants in Chengdu and Daqing, its national sales company in China and its R&D facility in Shanghai.

The transactions will be completed in two steps, starting in 2022 when the joint venture requirement for auto manufacturing in China will be lifted, and expected to be formally completed in 2023.

The transactions are pending regulatory approvals. Employees and partners within the relevant companies will not be directly affected by the transactions. Financial details will not be disclosed.

Volvo Cars has seen strong growth in the Chinese market in recent years. In 2020, it sold 166,617 cars in China, an increase of 7.5 per cent versus 2019 and its eighth consecutive sales record in the market. In the first half of 2021, sales increased 44.9 per cent compared to the same period in 2020, and by 40.1 per cent compared with the same period in 2019.

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The post Volvo Cars to take full ownership of its Chinese manufacturing and sales operations appeared first on AutomotorPro.com.

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Marco Carvajal has many years of experience in the editorial world, in the entertainment industry including events, cars, music and other fields. He also has wide experience in business, e-business and e-commerce. He is actively involved in the development of AutomotorPro.com and other affiliated car publications, from marketing and business management, to the editorial department as a contributing writer and editor for other writers. His passion for automobiles, travel and art, supports the development of AutomotorPro.com in an original and unique way, as a leader in the automobile editorial industry, nationwide in the United States and international territories. Marco graduated from the University of Miami, in addition to additional studies at other universities and institutions. In the field of business, he has created several enterprises and multinational projects related to publishing and entertainment. As a writer, the number one goal for Marco Carvajal is to be able to communicate clear information easy to understand for our subscribers, in an easy language, very detailed, about automobiles and lifestyle. He also likes to show a different perspective, with innovative style, about the information and characteristics of each car, mostly oriented to the daily life, about what each person may want learn about each car, thinking on the practical daily use of cars in real life. Marco Carvajal tiene muchísimos años de experiencia en el mundo editorial, en la industria del entretenimiento incluyendo eventos, autos, música y otros, así como gran experiencia en los negocios, e-business y e-commerce. Se envuelve activamente en el desarrollo de AutomotorPro.com, desde aspectos de mercadeo y manejo de negocios, hasta el departamento editorial donde también escribe y edita artículos de otros escritores. Su pasión por los autos, viajar y el arte, le ayudan a AutomotorPro.com a desarrollarse de una forma original y única, como un líder en la industria editorial automotriz a nivel nacional en Estados Unidos y otros territorios internacionales. Marco se graduó de la Universidad de Miami, además de haber realizado estudios y cursos en otras universidades e instituciones. En el área de negocio ha fundado varias empresas y creado varios proyectos multinacionales en el área editorial y del entretenimiento. Como escritor, la meta número uno de Marco Carvajal es lograr transmitir información sobre automóviles fácil de entender para los lectores, en un idioma sencillo, los más detallada posible. Además de lograr mostrar un lado diferente e innovador sobre la información y características de cada auto, principalmente orientado a lo cotidiano, a lo que cada persona puede aprender sobre cada automóvil, pensando en la vida diaria, en el uso de cada auto en la vida práctica.
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