Volvo Cars has taken control of its three joint venture operations in China for SEK2.2bn in order, it says, to “more accurately reflect its growing presence in the world’s largest car market”.
Volvo Cars now owns 50 per cent of its China joint ventures alongside Geely Holdings. These joint ventures include its car manufacturing facilities in Chengdu and Daqing, its engine manufacturing facility in Zhangjiakou and its research and development centre in Shanghai.
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The company says the move allows Volvo to fully consolidate its China joint ventures, providing a more accurate financial and operational picture of the company as it continues to expand in China. The company’s interim financial results announced yesterday are the first to incorporate the China joint ventures.
“The incorporation of the Chinese entities is an important step towards the long term objectives to capture the growth and sourcing potential in China,” said Håkan Samuelsson, President and Chief Executive.
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