Economy

Volvo's executive confident after takeover by Geely

(Xinhua)
Updated: 2010-04-01 15:14

NEW YORK - Volvo's North American CEO on Wednesday expressed confidence in the company's future after a takeover by China's Geely.

"The goal is not to break it apart and change everything, the goal is to help us to get better and better," Doug Speck told Xinhua at the New York International Auto Show.

Geely Automobile, China's biggest private carmaker, signed a deal with Ford Motor Co on Sunday to acquire Volvo for nearly $1.8 billion.

On Tuesday, Geely confirmed that it will not produce Volvo brand cars, nor will Volvo make Geely brand cars, following the purchase.

"Right now you will not see many changes, because we are doing a lot other things that make sure the process," said Speck. "But automatically, we will build products in China, North America and Europe, because that's how you grow and succeed."

He said Volvo will learn how to appeal to Chinese consumers and will automatically make its way into its design, engineering and manufactory philosophy.

Speck said he is proud of Volvo's 50-year-history in the North American market, believing the automaker is well-positioned in the market.

Li Shufu, Geely's chairman, said Volvo's biggest problem lies in its small production scale and high research and development expenses. Geely is prepared to pump up to 900 million dollars of capital into Volvo.