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

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

22.07.2021: Volvo Cars has signed an agreement with its parent, Geely Holding, to acquire Geely Holdingís stake in the companiesí joint ventures in China, with the aim of taking full ownership of its car manufacturing plants and sales operations in the country.


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 maximise 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 with the same period in 2020, and by 40.1 per cent compared with the same period in 2019.



- Volvo also photo

Permanent-URL: http://www.automobilsport.com/volvo-cars-full-ownership-geely-holding-chinese-sales-operations---226674.html

22.07.2021 / MaP

More News

BMW Group posts strong sales for first half-year
08.07.2021
On course for solid, profitable sales growth in 2021.BMW Group sales +39.1 percent higher year-on-year; 1,339,080 vehicles sold in first six months   - Sales up +7.1 percent from pre-crisis year 2019 - Sales more >>
McLaren Automotive appoints George Biggs as Commercial Executive Director
01.07.2021
Luxury supercar maker McLaren Automotive today announces the appointment of George Biggs to the role of Commercial Executive Director, effective 1 July.George assumes responsibility for global sales more >>
BMW i Ventures Announces New $300 Million Venture Capital Fund
01.07.2021
... to Further Invest in Sustainability, Transportation, Manufacturing and Supply ChainBMW i Ventures announced  the creation of a new $300 million venture capital fund with a strong focus on sustainability. The new fund will invest in early to mid-stage start-ups ope more >>
Mitsubishi Motors Announces Production, Sales and Export Figures for May 2021
29.06.2021
May 2021     Fiscal Year 2020 (21/04-21/05)     Calendar Year 2021 (21/01-21/05) Volume(unit)     YoY(%)     Volume(unit)     YoY(%)     Volume(unit)     YoY(%) more >>
Volkswagen Group secures second highest monthly market share in Europe since 2001
29.06.2021
    European new car registrations increased last month compared to May 2020, but still far from pre pandemic levels    Volkswagen Group gained traction thanks to SUV and new EV offerings more >>
Uber partnership to help Kia strengthen EV share in Europe, says GlobalData
18.06.2021
Following the news that South Korean automaker Kia has partnered with shared mobility giant Uber to supply electric vehicles (EVs) in Europe; Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers his view: more >>
Volkswagen invests a further Ä500 million in sustainable battery activities with Northvolt AB
11.06.2021
    Group participates in financing round with a total of US$2.75 billion and continues to hold about 20 percent of the shares in the Swedish cell producer    Funds to be used for capacity expansion in production, recycling and research and development    Arno Antlitz, Group Board Member for Finance a more >>
Goodyear to present at Deutsche Bank Virtual Investor Conference
10.06.2021
The Goodyear Tire & Rubber Company today said it will webcast its presentation during the Deutsche Bank Global Auto Industry Conference on June 16, 2021.Darren R. Wells, executive vice president and chief financial officer, will provide a business overview. more >>
EU budget 2022: Speeding up Europe's recovery and progressing towards a green, digital and resilient future
09.06.2021
The Commission has today proposed an annual EU budget of €167.8 billion for 2022, to be complemented by an estimated €143.5 billion in grants under NextGenerationEU. Their combined firepower will mobilise significant investments to boost the economic recovery more >>
Draft annual EU budget 2022 - Questions and answers
09.06.2021
  1.  What are the priorities of the draft budget for 2022?The EU budget is the centrepiece of the Union's recovery efforts, aiming to get Europe back on track following the COVID-19 pandemic and its consequences. more >>
FLA - Consumer car finance market boost in April as showrooms re-open
07.06.2021
New figures released today by the Finance & Leasing Association (FLA) show that the consumer car finance market reported growth in new business volumes of 1276% in April 2021 compared with the same month in 2020. In the first four months of 2021, new business volumes were 13% higher than in the same period in 2020. more >>
American Honda Sets All-time Monthly Sales Record in May
03.06.2021
    American Honda set an all-time sales record for any month on sales of 176,815 in May       Honda brand light trucks set new all-time monthly sales record, helping the brand to record May s more >>
Kia announces May 2021 global sales
01.06.2021
    May global sales at 245,994 units, up 49.2% y/y    Sales in Korea at 47,901 units, down 6.4% y/y    Sales outside of Korea jumped to 198,093 units, up 74.2% y/y    Kia to create sales momentum through new models, including the Kia EV6 battery electric vehicle and all-new Sportag more >>
Roland Villinger appointed new Head of Corporate and Product Strategy at SKODA AUTO
31.05.2021
- Roland Villinger will have responsibility for the newly created area of ‘Corporate and Product Strategy’ at ŠKODA AUTO as of 1 June 2021   - ‘Corporate Development and Digitalisation’ and &lsqu more >>
Mitsubishi Motors Announces Production, Sales and Export Figures for April 2021
28.05.2021
April 2021     Fiscal Year 2020 (21/04-21/04)     Calendar Year 2021 (21/01-21/04) Volume(unit)     YoY(%)     Volume(unit)     YoY(%)     Volume(unit)     YoY(%) more >>
Dometic acquires Front Runner Vehicle Outfitters
21.05.2021
On May 20, 2021, Dometic entered into an agreement to acquire Front Runner Vehicle Outfitters – a global provider of high-qualitive products for the outdoor market headquartered in South Africa.SUMMARY   • This more >>
Hagerty compares the depreciation of modern supercars
21.05.2021
    Hagerty studies the depreciation curve of modern supercars from Ferrari, Aston Martin, and Porsche    Analysts found that high-profile launches, with cars selling for over list, may damage residual values in the short-term    Italian supercars depreciate less than their British counterparts, with more >>
BMW Ad-hoc announcement: Partial release of the provision with respect to EU antitrust proceedings
21.05.2021
Based on the progress of the proceedings, BMW AG expects, compared with the statement of objections of 5 April 2019, that the EU Commission will significantly reduce its allegations against BMW AG in terms of content and duration. The subject matt more >>
UNCTAD - Global trade's recovery from Covid-19 crisis hits record high
19.05.2021
•    Global trade’s recovery from the COVID-19 crisis hit a record high in the first quarter of 2021, increasing by 10% year-over-year and 4% quarter-over-quarter, according to UNCTAD’s Global Trade Update released on 19 May.FULL Trade update more >>
Lexus achieves cumulative global sales of two million electrified vehicles
18.05.2021
    19 million tons cumulative reduction in CO2 emissions since 2005    Lexus’ first plug-in hybrid model to be launched in 2021, followed by a completely new, dedicated all-electric model in 2022    More than 10 electrified models to be launched by 2025    Carbon neut more >>
Mazda closes fiscal year with positive profit
15.05.2021
    Strong recovery in the second half of the fiscal year brought in positive profit    Positive outlook on sales and profits despite challenging market environmentThe Mazda Motor Corporation today announced more >>
Mazda Motor Europe announces Martijn ten Brink as its new President & CEO
15.05.2021
Mazda Motor Europe (MME) has announced that effective 24th June 2021, Martijn ten Brink, currently Vice President of Sales & Customer Service at MME, will become President & CEO of MME succeeding Yasuhiro Aoyama who has led the European business since 2019. more >>
Volta Trucks strengthens its Executive Management Team with strategic appointments
15.05.2021
    John Burrows appointed as Chief Financial Officer.    Casper Norden joins Volta Trucks as Chief Strategy Officer.    Mornie Robertson hired as Chief Human Resources Officer.V more >>
Goodyear announces pricing of $1.45 billion of senior notes in connection with planned Cooper Tire acquisition
14.05.2021
The Goodyear Tire & Rubber Company today announced that it has priced its private offering to eligible purchasers of $850 million aggregate principal amount of senior notes due 2029 (the “2029 notes”) and $600 million aggregate principal amount of senior notes due 2031 (the “2031 notes,” and together with the 2029 notes, the “notes”). The notes wi more >>
Toyota Announces Global Annual Results and Reconfirms Commitment To Carbon Neutrality
13.05.2021
    Global vehicle sales of 7.646m units, down by 1.309m units    Global net revenue of 27,214.5 bn yen (219.5 bn EUR), down by 2,651.9 bn yen    Global net income of 2,245.2 bn yen (18.1 bn EUR), up from 2,036.1 bn yen    Toyota Motor Corporation reconfirms commitment more >>
Nissan contributes - Ä 73 million for first quarter 2021 to Renaultís earnings
12.05.2021
  Nissan released  its results for the fourth quarter of fiscal year 2020/2021 (April 1st, 2020 to March 31st, 2021).Nissan’s results, published in Japanese accounting standards, for the fourth quarter of fiscal year 2020/2021 ( more >>
Gordon Murray Group announces major expansion plans and investment for future growth
12.05.2021
    Gordon Murray Group announces roadmap for future expansion through a £300M investment in Gordon Murray Design, Gordon Murray Automotive, R&D and talent       New division Gordon Murray Electronic more >>
Turbulent first quarter for UK used car market as sales fall -8.9%
12.05.2021
SMMT USED CAR SALES (data for Q1 2021)    UK used car transactions fall -8.9% in Q1 2021 with 1,687,755 transactions.    Monthly performances impacted by lockdowns, but March up on particularly weak 2020.    Market for used plug-in vehicles stays strong with a 37.9% rise in Q1 transactions. more >>
Brembo financial results for the first quarter of 2021
11.05.2021
RECORD Q1 REVENUES, UP 17.2% TO €675.1 MILLION (+20.9% ON A LIKE-FOR-LIKE EXCHANGE RATE BASIS). EBITDA AT €135.6 MILLION (EBITDA MARGIN: 20.1%),  NET PROFIT AT €61.4 MILLION Compared to Q1 2020: •    Revenues at €675.1 million (+17.2% or +20.9% on a like-for-like exchange rate basis); +1.2% compared to Q1 2 more >>
Audiís momentum was strong in the first quarter of 2021
07.05.2021
   Sales revenue €14.1 billion, operating profit €1.4 billion, operating return on sales 10.0 percent, profits before tax €1.7 billion        Strong performance partly thanks to special items: net cash flow €3.1 billion        First quarter of 2021 was characterized more >>
BMW Group First quarter: Transformation accelerated, core business significantly strengthened
07.05.2021
Zipse: "BMW Group highly profitable and sustainable" - Deliveries of electrified vehicles more than doubled - Free cash flow of € 2.5 billion in first quarter - Sustainable mobility needs more than just an e-drive - Earnings booste more >>
Successful start to the new fiscal year for Volkswagen
07.05.2021
Brand doubles its Q1 2021 operating profit year-on-year to EUR 900 million  Positive outlook for full year 2021– margin target of 6 percent in 2023 confirmed  Strong recovery in the Chinese market as well as North and South America  Sales of all-electric vehicles almost doubled and those of plug-in hybrids more t more >>
Volvo Carsí global sales up by 97.5 per cent in April
05.05.2021
Volvo Cars achieved its 10th consecutive month of sales growth, as the company’s global sales increased by 97.5 per cent in April compared with the same month last year.I more >>
The Porsche 911 GT3 RS MR laps the 20.832-kilometre-long Nürburgring Nordschleife in 6:54.340 minutes
04.05.2021
  On Friday 23 April 2021, the 383 kW (520 hp) Porsche 911 GT3 RS MR from the 991.2 generation lapped the 20.832-kilometre-long Nordschleife in the presence of a notary in 6:54.340 minutes.   The measured time for the 20.6-kilometre-lon more >>
Honda and Acura Light Trucks Drive Continued American Honda Sales Momentum Setting Multiple Records in April
04.05.2021
    American Honda light trucks, and Honda brand light trucks, each set new all-time sales records    Honda cars and trucks combine for best April sales in brand history     HR-V more >>
Goodyear reports first quarter 2021 results
01.05.2021
– First quarter Goodyear net income of $12 million; adjusted net income of $102 million– First quarter segment operating income of $226 million, strongest first quarter since 2018– Global consumer replacement volume significantly exceeded industry, driven by large-rim diameter segment- Record first quarter consumer more >>
Stellantis ranks first in global European sales in Q1 2021
29.04.2021
Stellantis takes the top spot among automakers with a market share of 23.6% in Q1 2021 in the Passenger Cars and Light Commercial Vehicles perimeter.In a context of moderate growth of the European market at 3.8%, the results achieved by Stellantis more >>
UK engine production rises 31.7% in March
29.04.2021
UK ENGINE MANUFACTURING    March UK engine production rises 31.7% in 2021, compared with Covid-hit month a year ago.    Output for domestic and overseas markets increases 50.4% and 19.9% respectively.    Performance in first quarter still down -11.1%, with 534,793 engines manufactured.   more >>
Mitsubishi Motors Announces Production, Sales and Export Figures for March 2021 and 2020 Fiscal Year
28.04.2021
  March 2021     Fiscal Year 2020 (20/04-21/03)     Calendar Year 2021 (21/01-21/03) Volume     YoY(%) more >>
2001-2021 copyright automobilsport.com