Volvo Cars has acquired control of its China joint ventures for SEK2.2 billion, according to a company news release.
Volvo Cars now owns 50 percent of its China joint ventures alongside Geely Holdings. These joint ventures include car manufacturing facilities in Chengdu, Sichuan Province and Daqing, Heilongjiang Province, engine manufacturing facility in Zhangjiakou, Hebei Province and research and development center in Shanghai.
The move allows Volvo to fully consolidate its China joint ventures, providing a more accurate financial and operational picture of the company as it continues to expand in China.
“The incorporation of the Chinese entities is an important step towards the long term objectives to capture the growth and sourcing potential in China,” said Håkan Samuelsson, president and chief executive.