Volvo is amping up its leasing, according to an Automotive News report.

Volvo is owned by China's Zhejiang Geely Holding Group Co.

Automotive News reports that Volvo began offering "competitive lease rates" this month, and is hoping to "push Volvo's lease penetration to 20 to 30 percent of sales, which is still lower than the 40 to 50 percent lease penetration rate of rivals."

Volvo NA's CEO Doug Speck told Automotive News that "Volvo likely will never reach lease penetration of 40 percent or more because buyers receive free scheduled maintenance for five years/60,000 miles." He explained that leasing will be tamped down by Volvo's maintenance program, which Speck said "makes buying a Volvo a very good value by comparison and will balance the percentage of what we do in leasing."
The article did not delve into Volvo's funding strategy.