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Thursday, April 5, 2012

Volvo to spend $11 billion over coming years, (NYSE: F)

Swedish carmaker Volvo, owned by China's Zhejiang Geely Holding Group Co Ltd, plans to spend $11 billion on developing new products and boosting its manufacturing footprint in the next few years, a company spokesman said on Thursday.Earlier in the day, German magazine Wirtschaftswoche said Geely would invest the money, but spokesman Per-Ake Froberg said that funding would come from Volvo itself and include financing from cash flow and borrowing."It is not Geely investing $11 billion," he said.Geely took over Swedish premium brand Volvo from Ford Motor Co in 2010 in China's largest overseas auto acquisition, reflecting the country's rapid rise in the sector.

Ford Motor Company (Ford) is a producer of cars and trucks. Shares of F remained unchanged at $12.50. In the past year, the shares have traded as low as $9.05 and as high as $16.18. On average, 50690700 shares of F exchange hands on a given day and today's volume is recorded at 7000.