Headquarter of Geely Volvo is likely to be

　　Evening News yesterday knew a corporate internal staff of Shanghai Automotive at Jiading confirmed that Geely is conducting recruitment at Jiading. Moreover, Geely hopes to recruit many technical staff from enterprises and departments of Shanghai Automotive. In fact, since Geely reached acquisition agreement with Ford on March 28, location of Volvo project in China has received a widespread concern.

　　In addition to Beijing, Tianjin, Chengdu, Daqing, Shanghai and even Shanxi are likely to be location for Volvo project in China. Considering Geely is recruiting in Jiading, Shanghai, location of Volvo project in Shanghai can come true.

　　Very coincidentally, on June 3 chief editor of a well-known financial media revealed on his micro-blog that Geely Volvo plant is scheduled to be located in Jiading, Shanghai, and Geely has begun recruitment. Volvo’s small advertisement appeared at the entrance of Shanghai Volkswagen. However, he said the news hasn’t been officially confirmed. “Now the company internally knew Geely is recruiting and personnel departments have received such an intelligence report. Personnel departments of Shanghai Volkswagen have formulated corresponding plans and may raise welfare and salary level”, said the chief editor.

　　According to reporters, headquarter of Shanghai Volkswagen is located in Jiading, and many affiliate enterprises and suppliers are also located in Jiading where consists of considerable outstanding auto technologies and R & D personnel. However, the chief editor pointed out it is common to see other enterprises employ staff from their opponents. He also said he didn’t know Volvo plant would be settled in Jiading.

　　After Geely’s successful acquisition of Volvo, distribution of its production base in China became an uncertainty. According to previous plans formed by Geely Group, it would build a plant in China with production capacity of approximately 300,000 units annually. Previously, the location for the new plant was supposed to be in several places: Beijing, Tianjin, Chengdu, Daqing, Shanghai, etc. Among them, Beijing is more likely, but agreement about location in Beijing was stopped the last moment before signing. Subsequently, Jingkai, Chengdu and Jiading, Shanghai became the top priorities for Geely.

　　It is reported that Geely Zhaoyuan was established on February 24 this year with registered capital of 20 million yuan, its shareholders are Beijing Geely Wanyuan International Investment Corp. and Shanghai Jiaerwo Investment Co. Beijing Geely Wanyuan International Investment Corp. invested 17.53 million yuan, and Shanghai Jiaerwo Investment Co. invested 2.47 million yuan by means of all money. As a result, they respectively own share of 87.65% and share of 12.35%.

　　In accordance with previous media exposure of the information, Geely and Jiading reached a Framework Agreement about Geely Volvo Shanghai Project. Under road map designed according to the framework agreement, both sides will set up Geely Zhaoyuan together if the location is in Jiading. In Geely Zhaoyuan charters: "both sides agreed to increase registered capital and paid-in capital to 8.1 billion as soon as possible in accordance with principle of proportional increase and proportional contribution.” Beijing Geely Wanyuan International Investment Corp. invested 7.1 billion yuan while Shanghai Jiaerwo Investment Co. invested one billion yuan.

　　However, Geely hasn’t confirmed where the location of Volvo is in China at present. The last response of Li Shufu, chairman of Geely Group was at Beijing Auto Show in April, he strongly denied location of Volvo would be in Jiading and pointed out the time was immature. “Geely Group hadn’t reached localization agreement with any government. As for the negotiations, Geely Group discussed with many local governments actually’, said Mr. Li. It is reported that national authorities will depend on the circumstances of Volvo's overseas operations so as to decide whether localization of Volvo in China can be permitted or not. (Translator: Qinghua Wade)

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　　http://auto.sohu.com/20100612/n272756745.shtml