Geely’s Volvo returns to operating profit in third quarter

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According to a Reuters report, Volvo have returned to an operating profit in the third quarter of 2010, showing that Volvo do actually have the ability to make a profit under Geely’s strewardship. When Geely purchased Volvo, they intended to keep it as an independent business away from Geely’s own car making business, this plan seems to have worked so far.

From Retuers:

Swedish carmaker Volvo, owned by Chinese group Geely Automobile (0175.HK), made an operating profit in the third quarter, the company said on Friday.

Volvo, bought by Geely from Ford (F.N) in August, did not disclose details, but said it has been profitable since the start of the year.

The car maker said it sold 272,555 cars in the year to September, up 12.5 percent on the previous year.

Geely paid Ford $1.3 billion in cash for Volvo and issued a $200 million note to the U.s. group with further payment due later this year.

Geely’s purchase of Volvo was China’s biggest acquisition of a foreign car maker and reflects the nation’s rapid rise in the auto world.