China’s Geely Motors to purchase Volvo – report
July 21, 2009 by Matt Brogan
A new report from the US today has indicated China’s Geely (Motors) Holding Group is expected to finalise a US$2 billion offer this week to purchase Volvo from Ford.
According to the report published in the Wall Street Journal, Geely’s move to buy Volvo stems from a January 2007 discussion between Don Leclair, then Ford’s chief financial officer, and Geely chariman Li Shufu.
If the move goes ahead Geely could “slash the brand’s costs by taking advantage of lower product development and manufacturing costs available in China”.
Although speculative at best, the move is quite feasible given Geely’s positive financial position and prior interest in the brand.
Either way CarAdvice will be sure to keep you posted on any developments.
Print it: 
Please no.
I’m not pleased at the sound of this.
I don’t know what it is but when I see or hear that any car brand is at all associated with the Chinese, it puts me off right away. I certainly wouldn’t buy a Volvo that was built in China. I wouldn’t want to mix the worlds safest brand with one of the least safe.
Besides, I don’t like the idea that they get cheaper manufacturing costs and we still pay the same.
OH NO! I think Volvo has come a long way under Ford. Not only has it made Volvos more attractive and better engineered but it took a long time to lose the Volvo “Stigma”. What a shame it would be to see all the good work undone.
All Geely models will be look like Volvo, it’s legally copied this time. This is sad for Volvo drivers.
well, if its cheap enough, some people will buy
relax guys , who knows volvo might just be better off under the chinese.
I don’t like how the Chinese and Indians seem to be buying all the car brands, they’re taking over everything.
FOMOCO need the money, they MUST sell it.
The question is they are running out of brands to sell…
Anyway, get over it, China is THE future in the auto world, the shopping spree is just starting…
Cheers
F-0
This is Volvo Cars isn’t? Because there is Volvo Trucks as well. They are two completely different companies.
And CarAdvice why did you get rid of the negative and positive hand things?
Oh dear :(. The Swedish government should think seriously about blocking this.
This could well destroy the Volvo brand for all time. A much better and more logical fit would be to sell to Tata, who has some understanding of the brand and synergies available through Jaguar and Land Rover. Tata is set to make mega-bucks with the Nano, so with some help from the Swedes, I’m sure they could swing it.
Matt^^^^
Nice, but Tata won’t pay what the Chinese will, and like Opel and Saab for GM, the American;s could/nt care who buys it and what they do with it, even if it goes broke, the American’s could/nt care, the Americans just want the maximum amount they can get and the headache to go away[And for the ceo's to get the biggest bonus he can...]
Cheers,
F-0
Volvo will still lose money being owned by Ford. Its good to see foreigners are still interested in Volvo for its safety innovations.
Hopefully, all design work stays in Sweden and higher end models manufacturing remain in Europe and lower end to China.
Prices need to come down for it to beat the German luxury marques.
The Chinese really got to improve their quality and stop cutting corners to make a quick buck. Premium brands make money by quality and performance. Not tacky plastics and copied designs.
As long as the cars are still designed and developed in sweden by volvo it shouldnt matter where its built or who finances it.
I’m with Matt on this one, This really looks like something the Swedish Government should block, Even if the designs and development are still done in Sweden it will still have a Chinese car stigma about it because lets face it the Chinese like building cheap things.
anyway I wonder if we will have to pay more for paint without lead?
NO!!! PLEASE NO!!! I am Swedish and love my Volvo cars. This will be a HUGE mistake!! Please Ford no!!
The alternative is no one’s buying and it will just disappear…
Volvo is a high quality car. I myself don’t have anything against Chinese or China products but when it comes to cars, I don’t patronize theirs. I really hope this won’t happen, Volvo’s name may possibly be at stake.
Don’t see what the big deal is. If the chinese stopped buying aussie products, our economy would be screwed. Don’t all the germans buy parts for their cars or have certain parts produced in China?
If chinese factories were so crap, why would VW setup a factory there?
Let’s wait and see how Volvo turns out in a couple of years before we all cry doom and gloom. I’m sure alot of people cried and whinged when Tata bought Jaguar & Land Rover as well.
If volvo is so great,why they broke? It is a highly unreliable brand. Why no one make any noise when holden put the lion on Dawoo. And when the Chinese buy something, there are so much noise? Let’s face it. China is the biggest market now. I wonder the facts will shut those noises after maybe in just 5 years! Let’s just watch!
China bought IBM… the personal computer division a couple of years ago. The brands Thinkpad and Lenovo are quite successful now ~
Considering China is now building the Airbus A320, I don’t think a Volvo would pose too much of a problem.
@Franzz
Assemble is different from building. One could get the parts for a Falcon and assemble it in say Antarctica ~
Out of the pot and into the fire….
While not a fan of their cars Volvo makes a lot of good engines and R&D, putting this company in the hands of the Chinese is wrong and in a fair and just world they shouldn’t beable to purchase them. The meek shall inherit the earth
I cannot stand Volvo being Chinese not LR/Jaguare being Indian.
That said, didnt the Chinese buy Rover?
To date, there is yet to be a car of any degree of quality produced in China. Generally the cars built there are inevitably of lower quality then cars built in the country of origin of the owner – say a BMW built in China (heaven forbid) would be considered of lesser quality than a BMW built in Germany. And Volvo could hardly be called Swedish anymore. It really is a nail in the coffin for the brand I am afraid.
Waiting for some idiots to bring up that argument that once Japan’s products were not seen a great and look at em now….
Chinese have no place owning nice things, they voted for it with Mao, now go stick with your rice plows.
elitist…. like it or not but they are taking over the world and dont forget ausralia neends china so dont be soo ignorent.
The sooner Ford gets rid of Volvo the better. What a loss to make after purchasing the company some 10 years ago for $6.4 billion under J Nasser.
Ford should focus on what made them sucessful in the first place.
Model T’s?
Figo, Australia is a sellout..Like they did to UK….then America…..Japan…and now China
They sell their mines to China , while China steals their secrets.
Atleast japan, Europe is doing something about protection.
very stupid.hou much u know about chinese companies. Gelly is not a crappy company in china. of course u can find everything crap in china. u sitll can find exceptional chinese companies in china.china is largest auto market now. it doesn’t like extremely poor indian market. standard is much higher, and most decent auto makers set up their plants in china.very amusing i hear some is associating the china and india