Geely - Volvo Deal Terms Revealed

Up until now, lots of media sources talked about the Volvo - Geely deal but nobody knew for sure which exactly are the terms of the agreement and what is going to happen to the Swedish unit after the Chinese manufacturer takes the majority package. Well, here are the first details of the deal which, according to China Car Times, got leaked onto the web a few days ago.

Basically, Geely will get control of a total of 9 products, S40, S60, S80, C70, C30, XC90, XC60, V50, V70. It will also become the owner of three vehicle platform, P1, P2 and P24, that might serve for the development of new models in the near future.

The 2,000+ dealership network will step under Geely's ownership, but the Chinese carmaker plans to further expand the number of stores selling cars under the Volvo badge.

Obviously, Geely wants to increase global sales and boosting Volvo's operations in China is the first attempt to reach this goal. According to the aforementioned source, the Chinese owners are hoping to reach 2 million sold units per year in the next 4 to 5 years, up from 400,000 units last year.

As for short-term plans, Geely wants to boost Volvo's sales to around 1 million units globally per year but the way the Chinese owners are looking to reach this goal is yet to be determined.

Meanwhile, negotiations between Geely and Ford continue, with voices close to the matter explaining that a deal between the two sides is expected to be reached anytime in the first quarter of this year.