[[posterous-content:pid___0]]Volvo the Swedish car maker will be forming a joint venture with its parent company Zhejiang Geely Holdings Group Co in China. According to reports, Geely plans announce a project to develop and produce an indigenousbrand of cars with Volvo in two months.
It was reported that Geely, which bought Volvo Car in2010 and controls Hong Kong-listed Geely Automobile Holdings Ltd, would set up a 50/50 joint venture with Volvo, according to spokesman Yang Xueliang who quoted Chairman Li Shufu.
Like other sino-foreign car joint ventures, Geely/Volvo the planned venture would develop and launch a self-owned brand and new energy cars in China. Li's remarks were confirmed by Yang and said the two companies were expected to announce details of the own-brand car project in two months. It was reported that Geely and Volvo have applied to China's National Development and Reform Commission (NDRC) to set up the joint venture and hope to receive approvalthis year. Under Chinese regulations, only foreign car brands is not produced in the Sino-foreign auto venture in China but must also set up research and development centres, and produce own-brand and new energy cars. Last year, it was announced by Volvo that it would invest up to $11 billion in five years to speed up new product development and expand its global footprint. It is building manufacturing plants in China's Chengdu and Daqing, with production scheduled to start in 2013.
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