SinoCast reports that Geely Automobile Holdings Ltd. will build a renewable energy vehicle production base in Shanxi Province in central China, citing an official of the local government.
The production base will use advanced green energy technology introduced from Volvo Car Corporation. Maintaining the independent operation of the acquisition target, Geely is brewing building up its own brand through the introduced technology.
Geely is more interested in Volvo’s technology, compared with the latter’s brand influence. According to the agreement inked between both sides, Geely will get Volvo’s sedan technology and the usage right of partial technology from Ford Motor Company.
At the end of March, Ford Motor Company entered into a definitive agreement to sell Volvo Car Corporation and related assets to Zhejiang Geely Holding Group Company Limited. The sale is expected to close in the third quarter of 2010, and is subject to customary closing conditions, including receipt of applicable regulatory approvals. (Earlier post.)