Ford sells Volvo to Chinese

VOLVO'S five-star safety record was not at risk from the sale of the brand to Chinese carmaker Geely, Volvo's local chief said yesterday.

VOLVO'S five-star safety record and environmentally friendly reputation were not at risk from the sale of the brand to Chinese carmaker Geely, the Swedish company's local chief said yesterday.

Geely, which has agreed to pay Ford $US1.8 billion ($2bn) for Volvo after 15 months of talks, regarded the company's core values as assets to protect, he said.

"Geely wants Volvo to maintain its leadership in safety innovation and caring for the environment," Australian managing director Alan Desselss said.

"I don't really see that anything will change."

Mr Desselss said he would be reassuring customers and dealers that it was business as usual and he did not expect any impact on sales.

Volvo already builds a small number of luxury cars in China and the new owners would expand production there to meet booming demand in the country for premium cars. Cars built in China had to pass the same quality tests as cars made at the company's plants in Sweden and Belgium, Mr Desselss said.

"No matter where it's built in the world, it's still to Volvo standards. The quality and safety aspects of those cars have not been compromised at any stage."

Mr Desselss said Volvo's management would still be Swedish and based in Gothenburg.

Volvo becomes the second Western carmaker to move east after struggling British brand MG was bought by Nanjing Automobile five years ago.