Asian Tech Press (OCT 19) -- Volvo Cars has reached an agreement with its parent company Geely Holding Group to wholly acquire the manufacturing operations of the Luqiao plant and integrate the plant into Volvo's assets. According to the agreement between the two parties, the transfer will be completed within two years.

After its acquisition, the plant's production capacity will be completely at Volvo's disposal, which will further strengthen Volvo's production capacity in China. The transfer will also bring clarity to the ownership structure of Volvo and Geely Holding Group.

Since its inauguration in 2017, the Luqiao plant has been owned by Geely Holding and operated by Volvo Cars. After the change of ownership, the Luqiao plant will continue to produce Volvo XC40 and XC40 RECHARGE pure electric models, among other products.

Source: Volvo press release