Geely, the preferred bidder on the sale of Volvo, hasn’t closed a deal with Ford yet, but is already making plans for Volvo.
They want to make two to three new models. These will all be big, luxury cars, which they believe will benefit global sales. In fact, they want to get global sales to over 1 million units per year. Volvo’s current sales are about 400,000 per year, so Geely’s plan are pretty big. Besides creating the new models, they will also build a new factory in China to help achieve this goal. It will be capable of producing 300,000 units per year. They predict that they can sell 200,000 units per year in China, compared to last year’s figure of 12,600 units, yet again showing that Geely’s goals are pretty ambitious.
Geely’s offer is believed to be around 2 billion Euros (About 3 billion USD), which is a hefty sum, but the main issue with closing a deal is the intellectual property rights.