China will play a key role in the planned doubling of global sales for Volvo Cars, the maker’s top executives revealed, as they outlined an ambitious plan to invest at least $10 billion in the company’s future.
That strategy will require a hefty investment by its new parent, China’s Geely Holding Group, said Geely CEO Li Shufu, though he stressed the two firms will continue to operate as “completely independent automaker(s).”
But increasingly, industry observers stress, the future of Volvo and Geely will become inextricably linked.
“We plan to invest $10 to $11 billion over the next five years globally,” Volvo CEO Stefan Jacoby told the Associated Press. That money will go towards not only a new assembly plant in China, but also help the maker develop a critical new platform and a new line of powertrains – both of which would be shared among a variety of future Volvo products.