Geely and Volvo form joint venture company Volvo shares shares

In addition, Geely Automobile Holdings Co., Ltd., Volvo Car Group, and Zhejiang Geely Holding Group have signed a memorandum. Volvo will take the lead in the globalization of high-end car brands, and the final agreement is expected to be formally signed in the near future. According to official sources, Geely Automobile will hold 50% of the shares in the company and Volvo Cars and Geely Holding Group will own another 50%.

For the above two agreements, Li Shufu, chairman of Geely Holding Group stated in the statement: “The collaborative cooperation within Geely Holding Group is entering a completely new stage. Through joint development, sharing of cutting-edge technologies and joint procurement, the company’s brands will remain Under the premise of unique positioning and differentiated configuration, we can better realize the scale effect and meet the needs of users in different market segments according to their own standards and characteristics."

Hankke Samuelson, President and CEO of Volvo Cars, stated: “It is the practice of the automotive industry to realize scale effect through technology sharing. We are very pleased to reach a new technology cooperation agreement with Geely, which will be the next generation of Volvo’s electric vehicle technology. The development will be of great help. Volvo Cars will continue to maintain uniform standards and serve the global market. The unique brand positioning and business model of Leadkow will complement the Geely Automobile and Volvo Cars, and we will spare no effort to support the development of the Pickle Car."

Relevant data show that Geely Automobile's total sales for the first six months of this year totaled 530,627 units, an increase of 89% over the same period of last year, and achieved 53% of the annual target of 1 million vehicles. At the same time, Geely Automobile announced that it will increase its annual target for 2017 to 1.1 million vehicles, which is 10% higher than the original forecast. According to the plan, Geely Automobile will also launch 8 new vehicles in the second half of the year, which will help to achieve the annual sales target of 1.1 million vehicles.

Volvo Car Corporation also released a financial report on Thursday, said operating profit rose 21% in the first half of the year from 5.6 billion Swedish kronor to 6.8 billion kronor in the same period last year, thanks to sales growth in China and Europe. Revenue increased from 84.2 billion kronor to 99.1 billion kronor in the same period last year. The operating profit rate increased from 6.6% in the same period of last year to 6.8%. Volvo said that in the first half of the year global sales increased by 8.2% to 277,641 vehicles, of which sales in the Chinese market soared by 27.6%.

It can be seen that both Geely and Volvo have achieved good results in the first half of the year, and the signing of a joint venture between Geely Holding Group and Volvo and the signing of the two partnership agreements for Volvo Cars may bring more for the two parties. Space for growth.