Geely edges closer to acquiring Volvo

[Curahee]

 

 

Geely edges closer to acquiring Volvo

 

Volvo looks set to fall into Chinese hands, after it emerged that Geely is the sole bidder for the Swedish carmaker, currently owned by Ford

 

02 Sep 2009 | Foreign News: China Viewed : 341 times

 

 

http://www.sgcarmart.com/news/article.php?AID=2526

 

 

Several anonymous sources has reported that Geely has signed a letter of intent to purchase Volvo from Ford, and revealed that Geely and Ford were still ironing out the details of the deal, including the transfer of technology, Volvo's marketing and market position and possibly layoffs.

 

If successful, Geely hopes to start producing Volvo cars in a new factory in the Guangdong Province of China and will also invest US$10 billion in building the Volvo brand. The first model to be designed and engineered under the new ownership is expected to be the next XC90 SUV, due in 2011.

 

Previous reports suggested that Chinese automakers Dongfeng Motor Group, Beijing Auto and Chongqing Changan Automobile Co, as well as a European consortium, were among the final bidders, but it appears that Geely is the sole remaining party interested in the troubled Swedish carmaker.

 

The Swedish government has announced that it will offer US$572 million in loan guarantees to entice any company to takeover Volvo, and the acquisition could be seen as a coup for Geely, who could stand to benefit from Volvo

[Shull]

whoa..transfer of safety technology from Volvo to Geely or transfer of cheap manufacturing from Geely to Volvo? [laugh]

[NightFox]

Oh man...I like Volvo cars....really wonder what will happen to it if Geely really takes over....

[Sw20]

Oh man... safest car in the world... to something like crushed coke cans after accident.

I've seen a Geely which is only 6 months old on the road... the condition of a 15 year old corolla or civic is better than any new china car.

As the guy drove off... can see the car rattle.

[Antirobo]

Oh man...I like Volvo cars....really wonder what will happen to it if Geely really takes over....

 

You get to buy it @ twice the price of a Geely.....

[Vblaster_w211]

Geely may benefit from Volvo's design and safety programmes, and Volvo may become profitable again by tapping on Geely's mass market.

 

OR, it could go the other way round, making Volvo less safety conscious and more cheap looking like many of China's mass market car, and Geely be burdened by Volvo's debts...