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UPDATE 1-Geely 2010 sales above target at 415,000 units

Published 01/11/2011, 12:07 AM
Updated 01/11/2011, 01:52 AM

* 2010 sales up 27 pct, exceed target

* Targets doubling consolidated profit by 2015

* In talks with Foxconn and UMC on car technology (Adds executive's comments, details)

TAIPEI, Jan 11 (Reuters) - Geely Automobile Holdings Ltd, China's largest private auto maker, exceeded its sales target in 2010 and seeks to double its consolidated profit by 2015 after its takeover of Sweden's Volvo last year.

Yang Jian, president of Geely's parent, Zhejiang Geely Holding Group, told a business forum in Taiwan on Tuesday that the company aimed to grow its consolidated sales by 150 percent to 2 million cars and is targetting profit of 200 billion yuan ($30 billion) by 2015.

Geely recorded sales growth in 2010 of 27 percent from a year earlier to 415,000 units, exceeding its target of 400,000. Consolidated sales, including Volvo, were 800,000 units and consolidated net profit was over 100 billion yuan.

Yang said the company has been in talks with electronics giant Foxconn Group, the parent company of Hon Hai and Foxconn International, about developing green cars together.

Geely has also visited UMC, the world's No. 2 contract chipmaker, to talk about cooperation opportunities in on so-called "intelligent" cars.

"We do not see sales of green cars jumping in the coming five years, but it is a trend and we are planning ahead," Yang told Reuters on the sidelines of the event.

He also said Geely had no plan to raise its stake in Manganese Bronze, which builds London's black cabs. Geely now owns 20 percent of the UK company.

Geely told Reuters last November it hoped to keep its growth going in 2011 in part by introducing more cars with automatic transmission.

China surpassed the United States last year to become the world's largest auto market. Zhejiang Geely made headlines in August when it closed a deal to buy Sweden's Volvo from Ford Motor Co. (Reporting by Lin Miaojung; Editing by Jonathan Standing)

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