Robust sales boost Geely's profit
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Net profit at Geely Automobile Holdings Ltd surged 35 percent in 2009 as a robust and rapid growth in sales in China offset weak demand in global markets.
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The Zhejiang-based private car maker, which sealed a deal with Ford to buy Volvo Car Corp, said net profit was 1.18 billion yuan (US$173 million) last year, compared with 879 million yuan a year earlier, according to its statement filed to the Hong Kong stock exchange yesterday.
The firm boosted sales of sedans by 60 percent to 326,710 units last year, backed by the Chinese government's stimulus for small cars.
Geely expects its business performance this year to continue to be positive as it will unveil new models and a new production base in Hunan as long as demand remains strong in China. It aims to sell 400,000 units this year, a rise of 22 percent from a year earlier.
"In the long term, the group will continue to seek capacity expansion, cost reduction and cooperation with international companies to be a global competitive player," Geely said.
The car maker, which hopes to tap Volvo's green technologies to improve its vehicle quality, has been reportedly drawing plans to localize the production of Volvo cars in China with Beijing and Chengdu as likely sites for manufacturing.
Geely and Ford said the deal, pending government approval, is set to be done in the second half of this year.
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