Swedish vehicle manufacturer Volvo was suppose to have been sold to China’s Geely Automobile Holdings last month, but the Chinese company is still to sign an agreement with Ford Motor Co.
Despite previously suggesting the deal would be complete by end of February, Zhejiang Geely Holding Group says work is still on track for the agreement, even though an official agreement has not been signed to date.
Geely is currently China’s biggest privately owned car manufacturer and agreed to pay $2 billion USD for Volvo by May. The idea is to produce Volvo cars at double the current rate by utilising a new factory in Beijing. Geely believes it can make Volvo profitable by 2011.
Last month saw the Sichuan Tengzhong Heavy Industrial Machinery Co’s deal for Hummer fall through partially due to no support from the Chinese government. Geely says it has obtained some of the regulatory approvals but details are sketchy.
Ahh I don’t think this will end well for the future of Volvo.
Well i don’t think this is going to end on a good note.
Anti-spam word: Volvo
Tata owns Aston/Jag and they’re doing just fine.
I’m surprised Ford still want to sell Volvo. Considering Volvo is very much intergrated into FoMoCo and they managed not to go bankrupt through the GFC, while attaining Volvo. It seems the worst is over and yet Volvo is still getting the chop?
Yes, it seems a good idea to hold not sell now…
US sales are well up and the range is well spread. The new S60 looks great too…
I hope they don’t sell Volvo before the new Focus XR5 comes out.
News from a Volvo newsgroup based on whispers from the Geneva Motor Show suggests the deal is in trouble. With Volvo’s loss to Ford reportedly being reduced from $700 million in 2008 to just $30 million last year, coupled with an apparent Government clampdown on lending in China, could bring an end to the deal. One can live in hope.
This is how business is done in Asia. Geely will still be negotiating with FoMoCo now that they have removed all other options for Volvo they have the flexibility to push harder.
Only Works if the seller is desperate. The Question is “how Desperate are Ford” .
I had someone try to drop Price on a car I was selling after we had agreed to a price…I immediately raised the Price for them. You should have seen the shock on their face. Car sold .