Geely grabs Zhongyu for further expansion

HANGZHOU - Following on the heels of its widely publicized bid for Volvo and government plans to encourage consolidation in China's auto industry, Zhejiang Geely Holding Group is again in the spotlight as it takes over a domestic special vehicle manufacturer.

The parent company of Hong Kong-listed Geely Automobile held a signing ceremony with Zhejiang Zhongyu Holding Group on Feb 26 to mark acquisition of Zhongyu Auto based in the capital of Zhejiang province.

Geely stated that it will "use Zhongyu's existing facilities and technology to develop and produce its own high-end passenger cars, multi-purpose vehicles and special vehicles to expand its product portfolio".