Volvo is no longer a joint venture brand.

Recently, Volvo announced that it has signed an agreement with Geely Holding Group, the parent company, to acquire the shares of Geely Holding Party in the China joint venture company of both parties, and fully integrate the manufacturing, R&D and sales of Volvo Cars in China.

China is Volvo’s largest single market and one of the fastest growing regions in the world. By acquiring another 50% shares of Daqing Volvo Car Manufacturing Co., Ltd. and Shanghai Volvo Car R&D Co., Ltd., Volvo will further consolidate its position in China and expand its influence in the China market.

Although the two joint ventures have achieved financial consolidation in Volvo Car Group, after the wholly-owned holding, Volvo Car will gain a larger share of net income and assets.

Hanken samuelson, CEO of Volvo Car Group, said: "Through this agreement, Volvo Car will become the first global automaker to fully integrate its China business."

Li Donghui, CEO of Geely Holding Group, said: "Geely Holding Group and Volvo Cars are constantly seeking to achieve the best asset combination within the group. This transaction will establish a clearer shareholding structure between Geely Holding Group and Volvo Cars to ensure the maximum synergy between the two parties."

The transaction will be divided into two steps, which is expected to be officially completed in 2023, starting with the lifting of the foreign share ratio limit for passenger cars in China in 2022.

The transaction must be approved by the regulatory authorities, and both parties will not disclose the details of the transaction, and the employees and partners of the relevant companies will not be affected.

In recent years, Volvo has achieved strong growth in the China market. In 2020, China sold 166,617 cars, an increase of 7.5% compared with 2019, and set a sales record in the China market for eight consecutive years. In the first half of 2021, sales increased by 44.9% year-on-year.

Throughout fiscal year 2020, Volvo Car Group’s annual operating profit was SEK 8.5 billion (SEK 14.3 billion in 2019) and its annual turnover reached SEK 263 billion (SEK 274.1 billion in 2019).

The second half of 2020 has the best profit and sales volume in history. In the last six months, the revenue was SEK 151 billion, the operating profit was SEK 9.5 billion, and the profit increased by 8.2%, but the revenue only increased by 4.9%. This shows that Volvo has succeeded in mitigating and restoring the impact of the coronavirus pandemic.

Let’s look back at the history of Volvo: the brand was founded in 1927, and today, Volvo is one of the world-famous automobile brands, with business in more than 100 countries. In 2010, it was acquired by China Geely Holding Group.

Volvo’s headquarters, product research and development, marketing and administration departments are mainly located in Gothenburg, Sweden, while Volvo Car’s Asia-Pacific headquarters is located in Shanghai, China.

Volvo has automobile main engine manufacturing plants in Gothenburg (Sweden), Ghent (Belgium), Chengdu (China), Daqing (China), Luqiao (China) and Charleston (USA), engine manufacturing plants in Sheffield (Sweden) and Zhangjiakou (China), and parts manufacturing plants in Ulovstrom (Sweden).