Photo: Volvo Trucks
Fleetowner 26535 Volvofh2

Chinese car maker buys $3 billion-plus stake in AB Volvo

Dec. 27, 2017
Geely, which bought the Volvo car brand from Ford six years ago, noted in press reports that there are “no plans” to reunite the Volvo car and truck businesses.

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.”

About the Author

Fleet Owner Staff

Our Editorial Team

Kevin Jones, Editorial Director, Commercial Vehicle Group

Cristina Commendatore, Executive Editor

Scott Achelpohl, Managing Editor 

Josh Fisher, Senior Editor

Catharine Conway, Digital Editor

Eric Van Egeren, Art Director

Sponsored Recommendations

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...

80% Fewer Towable Accidents - 10 Key Strategies

After installing grille guards on all of their Class 8 trucks, a major Midwest fleet reported they had reduced their number of towable accidents by 80% post installation – including...

Proactive Fleet Safety: A Guide to Improved Efficiency and Profitability

Each year, carriers lose around 32.6 billion vehicle hours as a result of weather-related congestion. Discover how to shift from reactive to proactive, improve efficiency, and...

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!