China’s Zhejiang Geely Holding Group – better known simply as Geely – has yet to officially acquire the Volvo brand from Ford , but the Chinese automaker already has big plans for the Swedish brand, including boosting annual sales to 1 million units.
According to The Wall Street Journal, Geely has outlined a plan for Volvo that includes boosting annual sales to 1 million units and establishing a production facility in China. Additionally, Geely wants to add two or three large vehicles to Volvo’s lineup.
Under the terms of the plan, Geely would establish a new manufacturing base in China capable of producing 300,000 vehicles per year. Geely also believes it can boost Volvo ’s China’s sales from about 13,000 units to 200,000 units.
Although Volvo’s current plans call for about 400,000 annual sales, Geely believes it could boost that figure to about 1 million units as early as 2013, thanks in large part to the brand’s increased presence in China and the addition of more luxurious models.
However, Geely still has a few hurdles to clear before it can start the turnaround of Volvo. Geely has been named the preferred bidder by Ford, but the two sides are still miles apart on a technology sharing plan.
