Last year, Volvo CEO Stefan Jacoby said the Swedish automaker planned to expand its presence in China, doubling sales by 2021 and securing at least 20 percent of the premium luxury market alone 2015. Jacoby’s pronouncement made sense: Volvo is owned by the Chinese automaker Geely.
This week, Volvo announced it would be spending around $11 billion in manufacturing and product development in the coming decade. Despite earlier reports that the funds would be coming from Geely, Volvo spokesperson Per-Ake Froberg says the monies would be directly from the automaker. Says Froberg: “It is not Geely investing $11 billion.”
According to German magazine Wirtschaftswoche, Geely president Li Shufu wants Volvo to use the funds to boost R&D, update automotive technology, develop electric cars, and even and build a new engine manufacturing plant.
“We want to revive Volvo and give the brand its strength back,” Shufu said.