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Volvo takeover: Geely buys Volvo, will put in $900 M
After the Volvo takeover on Sunday, hinese auto maker Geely Holding group has announced that it will chip in $900 million working capital into the car unit. This stands over and above the $1.8 billion that it gave for purchasing Volvo from Ford.

AFTER THE expensive Volvo takeover, Chinese auto maker Geely Holding group has announced that it will chip in $900 million working capital into the car unit. This stands over and above the $1.8 billion that it gave for purchasing Volvo from Ford in the first place.

Li Shafu, Geely chairman said, "We should not only inject money into Volvo, but also endeavor to improve Volvo's profit-making capability."

Volvo's takeover occurred on Sunday, when Zhejiang Geely inked a deal with Ford Motors in Sweden to acquire the car unit. Volvo has been plagued with a small production scale, though it maintains a high research and development expenditure. The sales and profit generated by the unit have not been enough to maintain the high expenses.

Li Shafu, in the press conference over the Volvo takeover on Tuesday, stated that one of the goals for Volvo under Geely would be to increase production and sales, apart from cutting costs. He however clarified that the unique characteristics of Volvo won't change under Geely. He said, "Geely is Geely, while Volvo is Volvo. Geely will not produce Volvo, and Volvo will not produce Geely."

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