For an estimated $3.3 billion, Chinese carmaker Zhejiang Geely Holding Group is buying a roughly 8.2% stake in Sweden’s AB Volvo, which builds commercial trucks, construction equipment, and marine vessel engines.
The Chinese car maker – which goes by the name “Geely” – already owns the Volvo car brand, which AB Volvo sold to Ford Motor Co. in 1999, which Ford then sold to Geely in 2011.
According to press reports, Geely has “no plans” to reunite the Volvo car and truck brands. Geely also owns the company that makes London’s black cabs and bought British sports carmaker Lotus back in August.
How the deal impacts Volvo’s relationship with Chinese truck maker Dongfeng, in which Volvo has owned a 45% stake since 2015, is unclear.
Back in September, Geely said it planned to “improve its product portfolio” by launching more than 30 new models covering compacts, sedans, SUVs, and crossovers in order to meet the demands of different consumer groups in the short term. At the same time, the company stressed it remained committed to implementing its “Blue Geely Initiative” with plans to offer 40 models using hybrid, plug-in hybrid, or pure electric powertrains by 2020 and thereby “become a leader in the development of new energy vehicles.”