Volvo China CEO: acquisition good for brand

• Source: Global Times
• [14:26 January 20 2011]
• Comments

2009 Volvo S40

Alexander Klose, CEO of Volvo China, said Geely's bid for Volvo will be a great benefit to the Swedish automaker. He made the comment on January 18 in Guangzhou.

The timetable for Geely Holding Group's acquisition of Volvo has been set for May. The two sides are in the final phase of talks. An anonymous source said Geely will get technology ownership from Volvo, including the new CITY safety system.

Klose said after Geely and Ford finalize the deal, Volvo will become the only luxury vehicle owned by a Chinese company, and he believes that the Volvo models will get more support from the Chinese government and customers once it becomes a Chinese brand.

In addition, the acquisition will boost Volvo production in China, and Volvo cars may be exported abroad in the future, said Klose.

He added Geely is taking on risks by buying Volvo, but he believes the Chinese automaker has the ability to control them.

Agencies and Shi Jierui contributed to this story