BEIJING, Dec. 17 (Xinhua) -- Geely, the Chinese car maker that bought Volvo in 2010, and BNP Paribas Personal Finance have signed an agreement to establish a joint venture for vehicle financing in China, Geely said Tuesday in a statement.
The registered capital of the joint venture totals 900 million yuan (147 million U.S. dollars), with 80 percent coming from Geely and the remaining 20 percent from the French financial institution.
Establishment of the company will be subject to the approval of the Chinese banking regulator, the China Banking Regulatory Commission, and other relevant government authorities, according to the statement.
The company will provide auto financing products and services in China, including wholesale financing solutions for auto dealers to finance the purchase of cars and operating facilities, as well as retail financing to end-customers who buy vehicles branded with trademarks owned and used by Geely or Volvo.
China's auto market continues to grow at a rapid pace and customers are increasingly looking for new and innovative ways to finance their auto purchases, Geely's vice president and CFO Li Donghui said.
"These financing solutions will also enable us to help our distributors improve their operating efficiency and maximize their revenue potential," he said.
Eric Raynaud, CEO of BNP Paribas Personal Finance Asia Pacific, said participation in China's auto financing sector is a key milestone for the French financial institution's development plan in China, following its announcement in July to enter a 50:50 equity joint venture with Bank of Beijing in the insurance sector.