Geely plans joint venture in Russia

Updated: 2007-11-26 09:12

China's homegrown private automobile manufacturer Geely Automobile said it was planning to set up a joint venture in Russia amid its efforts of going global.

"We are considering a joint venture in Russia, however, details of the production are yet to be decided," Hong Shaolun, a high-ranking executive of Geely, told Shanghai Securities Journal.

Geely expects the joint venture to kick off production in 2008 with a target output of 10,000 vehicles for the first year, Hong said.

Hong said the company also plans to set up assembly plants in Central America and Africa, and is currently in talks with partners in both locations about selling cars there, which could be secured in 2008.

The Zhejiang-based company has earlier sealed a contract with the Rolf Group of Moscow to try to sell up to US$1.5 billion worth of cars in Russia in five years.

The Chinese automaker aims to sell an average 30,000 cars in Russia every year, according to the contract.

Geely plans to double its overseas sales to 20,000 cars this year, from about 10,000 in 2006.

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