Volvo to adopt new strategy in China

Geely Automobile Holdings Ltd. said it will suspend and reduce the production of the Volvo S80L 2.5T and XC60 3.0T, following the recent acquisition of Volvo Car Corp. by Geely parent Zhejiang Geely Holding Group Co., Ltd. from Ford Motor Co. Geely Holding Group Board Chairman Li Shufu has inked letters of intent with some local Chinese governments on the purchase and sale of Volvo car models. Since municipal government vehicles in China are usually required to have a displacement below 2.0L, Audi launched 2.0T car models such as the A4L and A6L. Geely likely will follow and adopt the same strategy for Volvo. A top executive of Volvo (China) Investment Co., Ltd. revealed that the new Volvo 2.0L gasoline turbocharged direct injection (GTDi) engine will hit the Chinese market in early October 2010, which indicates a new strategy for the brand. (August 13, 2010)