FRANKFURT, April 5 (Reuters) - Zhejiang Geely Holding Group Co Ltd, parent of Geely Automobile Holdings Ltd, plans to spend $11 billion on Volvo Cars over the next five years, German magazine Wirtschaftswoche reported on Thursday.
Geely, which took over Swedish premium brand Volvo from Ford Motor Co in 2010, aims to build a new engine factory, beef up research and development and upgrade technology at Volvo, the magazine quoted Li Shufu, president of Geely, as saying in an article published on Thursday.
The two car makers will also pool purchasing of parts and components and jointly develop small engines and technologies for electric vehicles, Wirtschaftswoche reported.
“We want to revive Volvo and give the brand its strength back,” Shufu told Wirtschaftswoche.
Geely will develop a new premium brand for the mass market in China using Volvo technologies but the new brand will later be put under Geely Automotive.
Volvo is aiming to almost double global sales to 800,000 units by 2020 and plans to increase Chinese deliveries to about 200,000 by 2014 from 47,000 last year, the magazine said.