Gasgoo.com (Shanghai August 29) - After a year of Volvo's acquisition by Geely, what have the two companies gained? Following Volvo's summit in Beijing held last week, the question has been echoing throughout the automotive industry in China.

"As China's first world-class luxury brand, Volvo has been achieving profits for six consecutive quarters," Shen Hui, senior vice president and board chairman for China Operations, boasted at the event, the Xiaoxiang Morning Herald reported. The brand's sales were especially strong in China, where they grew nearly 40 percent in the first half for the year. The performance is in stark contrast with Volvo's results when it was in the hands of Ford before its purchase by Geely.

Volvo is adapting a people-centric strategy as its new focus. According to Geely Chairman Li Shufu, during its first year under the Zhejiang-based company, Volvo is beginning to lay the foundations for its stay in the Chinese market. "We have to work hard to help create a new era for Volvo," Mr. Li said.

Mr. Shen and Mr. Li's faith in Volvo's performance can be seen clearly, with the manufacturer's global sales growing a tremendous 22.3 percent in the first quarter of the year. Volvo's performance in China has also been worthy of praise, with its second quarter profit totaling 600 million Swedish kronor ($95.36m), up 170 million kronor ($27.02m) from last year. China has already become the brand's third largest market worldwide.

Volvo's plans to open new factories in Chengdu and Daqing, Heilongjiang, have received internal support, and are currently waiting for the government's seal of approval.

Source:gasgoo