Volvo sale to Geely hits snag

By Matt Brogan | March 20th, 2010

Zhejiang Geely Holding Group Chairman Li Shufu said that talks with Ford about the purchase of Volvo has hit a snag. The problems are on the Ford side but the sale is still expected to be completed.

“We’re ready to seal the deal, the situation was changing constantly and the negotiation process very tough” said Li.

“If the deal fails, the problem is not on our side. We have not violated any part of the agreement,” he said, without saying what the problems were.

Zhejiang Geely plan to complete the purchase of Volvo for up to $2 billion by May.

A spokesman for Geely said the company aims to sign the deal by the end of March and complete the purchase by the second quarter.

Calabria

*&*^&*^PrIMa(&(*(

Looks like its always real difficult to close a deal with China/USA

Always issue to slow/stop the deal, look at Hummer, fell over.

The REAL truth is the middle-men [legal team] do it on purpose to milk both sides for as much as they can, big fish like this don’t come around all that often.

Ford should do what GM did with OPEL, can the sale and keep it, the GFC is over and Volvo is a very good well known brand with great potential.

Cheers
Gerg

Maybe this is the one company Ford has fixed that it shouldn’t throw away.

Lot6

THATS WHAT I SAID TILL IT WAS STUPIDLY DELETED>??

maximark

Please God, don’t let it happen.
Shak

Who’s that jolly little fellow in the photo?

dlunn64

A man who knows he has picked up volvo for a steal.
Lot6

His name is Li Shufu, he/they did NOT steal Volvo, they paid 2 billion for it [or going/trying to], the other ex swede, Spyker stole SAAB though for just 400 million $

blitzkrieg

Lol,a two star safety company taking over the most solid safe vehicles ever made.
I can see their ad campaigne now…..we take out ABS,EBD,traction control,all airbags,pre tentioning seatbelts,stabillity controll,but you buy $12,999.

DGS

More likely: Volvo concept model with all the safty features, design, technology and inovations, but unknown badge – $12,999

Lot6

$12,990 is to much, Proton, Suzuki and Hyundai are already under or equal to that.

Am looking @ a 4 digit figure, ie $9999 or LESS

Dean

I certainly hope that this is the end of long-time mismanagement by Ford.

This is a Chinese government-backed purchase. What the Chinese want is the technology. Once they get the ownership, the technology will be shared by all Chinese domestic car manufacturers. I am sure this will dramatically and quickly improve the whole Chinese car manufacturing industry. Maybe the first positive change we can see here is from those Great Wall cars?

AAA

Technology what technology? If you’re in the industry you may know that most of the car parts/technologies such as ABS, ESP/ESC/DSC, fuel injection system, starter motor, alternator, fuel injectors, turbos, whatever could be bought from companies like Bosch, Nippon Denso, Mitsubishi, Federal Mogul or thousands of other car parts suppliers. As for car stereos they could buy it from Pioneer, Clarion, Panasonic, others for example If Volvo had that much leading tech, they wouldn’t have phailed and be put up for sale

ohreally

Purchasing all the innovation and tech skill of volvo at this price is a bargain. They will be quick to share it with the other Chinese car companies.

VW can pack up and leave china soon

Lot6

Why would VW leave, they sell more cars in China in 2009 then they did in GERMany, THE biggest market on the planet.

OH, and its just early days…..

UMWAHT

lol at the picture
Jig

Innovation gone. Reliability gone. Safety gone. But yes, Volvo will be cheaper to buy if this sale ever goes through.
http://www.carpeople.com.au Car People

Well more than a month later, it hasn’t seemed to cause too many ripples.

Even with good coverage by CarAdvice.com.au, most people I speak with outside the industry on the sale of Volvo are unaware that it’s happened. That’s not necessarily a good thing.