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Geely set to inject $900m into Volvo

(Xinhua)
Updated: 2010-03-31 00:47
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BEIJING - Chinese auto maker Zhejiang Geely Holding Group is ready to inject $900 million operating capital into Volvo on top of the $1.8 billion purchase price, Geely chairman Li Shufu said Tuesday.

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"We should not only inject money into Volvo, but also endeavor to improve Volvo's profit-making capability," Li said at a press conference to discuss the Volvo takeover.

The Zhejiang-based Geely signed a deal with Ford Motor Co Sunday in Sweden to acquire the US auto giant's Volvo car unit.

"Geely is Geely, while Volvo is Volvo. Geely will not produce Volvo, and Volvo will not produce Geely," said Li, also the founder of the firm, adding that Volvo would keep its unique characteristics after the takeover.

Li said Volvo's biggest problem was its small production scale and high research and development expenses, adding Volvo should try to increase production and sales to cut costs.
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