Volvo takes over China joint ventures in $2.7bn deal

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Volvo Cars has taken control of its three joint ventures in China for $2.7bn, to “more accurately reflect its growing presence in the world’s largest car market”.

The Swedish manufacturer now owns 50% of its China joint ventures alongside its parent company Geely. The joint ventures include car manufacturing facilities in Chengdu and Daqing, an engine manufacturing facility in Zhangjiakou, and a research and development center in Shanghai. Volvo said in 2013 that it planned to export cars from its Chinese factories to the USA and Europe, as part of an ambitious five-year plan.

Volvo says that the joint venture purchase allows it to fully consolidate its activities in China, providing a more accurate financial and operational picture of the company as it continues to expand in the region. It announced the move at the same time as its financial figures, which showed a $2bn profit for the first half of 2015.

“The incorporation of the Chinese entities is an important step toward the long-term objectives to capture the growth and sourcing potential in China,” said Håkan Samuelsson, Volvo president and chief executive.

August 26, 2015

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Dean has been with UKi Media & Events for over a decade, having previously cut his journalistic teeth writing and editing for various automotive and engineering titles. He combines extensive knowledge of all things automotive with a passion for driving, and experience testing countless new vehicles, engines and technologies around the world. As well as his role as editor-in-chief across a range of UKi's media titles, he is also co-chair of the judging panel of the International Engine of the Year Awards.

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