Last week, the Russian car company Derways has started performing operations like body welding and other assembling work for Geely vehicles. Geely’s output there is expected to reach 1,100 units by the end of next month, while the company targets an annual production of at least 12,000 units for this factory.
According to Xinhuanet, the Derways plant will also manufacture vehicles for other Chinese manufacturers besides Geely, with names like Great Wall Motors, Li Fan, Chery and Haima on the partner list. The factory’s total annual output is estimated to reach 100,000 units.
In addition to that, local residents could benefit from special prices for these vehicles, as the company stated (which has predicted a great demand for its vehicles on the Russian market) for the source.
Geely has been on many automotive and financial specialists’ lips in the second half of 2009, as the Chinese company is the most likely buyer for the Volvo brand, which has been made available on the market by Ford in early 2009. The two companies (Geely and Ford) are still negotiating the terms of the deal and the sale is expected to be closed in the first quarter of this year. The Chinese automaker's financial results for 2009 show a 59% sales increase. However, only 6% of the total sales were exports (from a 2008 figure of 20%) so we can understand why Geely wants to improve this particular area of its business.
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