Regions

Hong Kong-based automaker Geely Automobile Holdings Ltd said it would begin offering vehicles it had developed with Swedish carmaker Volvo in 2015. Geely's parent company, Zhejiang Geely Holding Group Co, bought Volvo Cars three years ago for USD 1.8 billion from Ford Motor Co. The joint development would enable the Chinese carmaker to compete with foreign car manufacturers doing business in China.

Last year, Zhejiang Geely agreed with Volvo Cars to develop vehicles by leveraging the Chinese firm's full access to technology. Volvo had already started doing test runs in its first Chinese factory. Known for safe and reliable cars, Volvo's reputation would help enhance the Chinese automaker's image. The latter said it plans to become the largest exporter of cars in the country.

While no further details were given about the new vehicle developed by the two companies, Geely Chief Executive Officer Gui Sheng Yue told reporters, "We have entered into actual research and development stage and I believe we can see the new product in the year after next."