Volvo Car Corp. struck a deal with Chinese parent Geely Holding Group to acquire full ownership of the latter’s vehicle assembly plant in Luqiao in east China’s Zhejiang province.
The purchase will allow the factory to build vehicles for Volvo only while supporting the Swedish automaker’s business growth in China. It will also simplify Volvo’s ownership structure within Geely, the Swedish carmaker said this week.
The Luqiao plant will become the third production site in China dedicated to Volvo light-vehicle output.
Volvo said it will take over all of the factory’s 2,600 employees as well as all manufacturing and supporting facilities, without divulging additional details about the deal.
Geely opened the Luqiao plant in 2017 to assemble Compact Modular Architecture-based vehicles for Volvo and Link & CO brands.