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China’s Geely to buy Volvo?

06/18/2009, 12:43 PM

By Drew Johnson

Koenigsegg officially purchased the Saab brand from General Motors earlier this week and it looks as though another Swedish automaker could soon be off the market. Reports surfaced earlier on Thursday that China’s Geely has signed a letter of intend to buy the Volvo brand from Ford.

According to China’s Shenzhen News, Geely has inked a deal with Ford to purchase the Volvo brand. Citing unnamed government officials, the Chinese news outlet said an initial agreement is in place, although several details – such as transfer of technology – were still under negotiation.

Under the terms of the deal Geely will reportedly invest up to $10 billion in the Volvo brand, including moving most of the Swedish automaker’s design and production operations to China. The next-generation XC90 – due out sometime around 2011 – could be the first Geely-penned Volvo model.

However, Shenzhen News’ report should be taken with a grain of salt. Chinese news outlets aren’t exactly known for their accuracy and several other Chinese automakers – such as Beijing Automotive Industry Holding Corporation (BAIC) – have been named as potential Volvo buyers.

Ford responded to the reports by saying “reports of such a sale by any media outlet are speculative and, therefore, are not accurate”, but all automakers tend to deny any sale rumors until a final deal is in place.

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06/18, 12:46 PM

posted by:

elviososa

hmmm…..Whoever buy Volvo should leave the factory and design studio alone.

06/18, 12:48 PM

posted by:

Veda

They’ll probably just use them for their safety technologies, of course for their long term plan to get inside the US market. There. Paranoid US patriots can comment now.

06/18, 12:50 PM

posted by:

05Z88Path

“including moving most of the Swedish automaker’s design and production operations to China”

Well that’s bad news…very bad news (if it’s true). Volvo’s well known safety record and recent good looking cars/SUV’s (at least IMO) would fly out the window.

06/18, 12:57 PM

posted by:

mulletmaster

No, remember China makes solid cars, much more so than Renault

http://www.leftlanenews.com/china-bans-renault-imports-due-to-quality-and-safety-concerns.html

06/18, 1:04 PM

posted by:

F50

Fiat should buy them, they couldn’t get GM Europe so they should get Volvo, and plus, Volvo develops platforms(I think) and it will also help with Fiat’s and Chrysler’s reliability and safety. and Volvo would be European.

06/18, 1:10 PM

posted by:

johnnycanuck

I’m just picturing dozens of Chinese pouring over some poor dissected Volvo carcass like it was from another planet.

06/18, 1:54 PM

posted by:

spg900

This is so bad.

06/18, 2:09 PM

posted by:

Borat

Johnny, they really don’t need to buy company to “borrow” design clues. It is sad news.

06/18, 2:19 PM

posted by:

Lionwithoutpride

Borat-

I think Johnny was probably referring to what’s under the cosmetics . . . all that safety tech that had Ford at the top of the safety pile a few months ago. Now, we can fully expect Ford’s safety to plummet and Geely’s safety to meet/exceed U.S. requirements before (maybe 10-15 years from now) we start seeing Geely brand signs going up next to Volvo’s. The Chinese are looking at the long term and making a brilliant decision. None of us can fault them for doing what is good for their company, but dangit if I don’t wish Ford would realize the value of what they have in hand. You can’t buy the good press of safety. Years ago, Fords were known for fires and extremely dangerous rollover failures. We all know it’s Volvo’s tech-transfer that changed those realities (in the cases of things like rollovers) and is helping to change perceptions (in the cases of things like fires). Dumb move Ford. Brilliant move Geely.

p.s. You know Geely is going to pick Volvo up for a bargain-basement price to boot!

p.p.s. God I hope this sale is just an internet rumor.

06/18, 2:47 PM

posted by:

Bankruptcy2009

Lionwithoutpride you might be right. Ford has shown a propensity to use something that is good for them and then discard People or companies later on. This is unfortunately is the BS that has really hurt US Businesses. Because who wants to be the Individual or company to say hey here is the next big thing in technology ONLY to be Used and thrown out the door and never given any credit whatsoever.

I say this the proof will be in the product. Ford Next generation of vehicles looks to be pretty solid, But where you want to look is the next generation of Ford Products in 2012 aka 2014 to 2015 to see if Ford is forgetting the principles of safey or are they sacrificing it in the name of fuel economy.

06/18, 2:55 PM

posted by:

Borat

Lionwithoutpride, I wish you p.p.s was correct. You did not mentioned the fact that Ford completely raped Volvo of their products. All Focuses and Mondeos in Europe are Volvo based including engines and underpinnings. Although US was the largest Volvo market, in Europe buying Volvo vs. Ford is like buying Cimarron vs. Chevy in US 25 years ago with results of no Volvo sales to talk about. You cant survive with only one market – US.

06/18, 3:41 PM

posted by:

shane train

It’s way too far away from April 1 to tell us something like this.

06/18, 4:33 PM

posted by:

Borat

Read p.p.s in Lionwithoutpride post

06/18, 5:32 PM

posted by:

KarLoveBoy88

Ford please! I beg of you, don’t do it! Its the Chinese man! Who the hell trusts them with anything except for iPods and plastic utensils?

06/18, 6:20 PM

posted by:

DenverGuy217

RIP Volvo All hail the rebirth of SAAB!!

06/18, 10:50 PM

posted by:

Veda

If the Chinese can pull off the safety req for US then it’s all for the better for us. Entering US means they have to conform to the emission req too so cheap but safe and efficient cars are what the US needs anyway. Why the panic?

06/19, 1:20 AM

posted by:

jdasch1

Volvo keeps losing money so Ford needs to sell it. It was Jacque Nassar’s idea to buy them, and Jack is gone. I think Ford needs to concentrate on Ford only. This in the end will be a very good thing for Volvo as well. They were dying and maybe now they will sell a hell of alot more in the rest of the world….namely China. The Chinese want cars and China’s newest car company “Volvo-Geely” will sell more in China alone than the rest of the whole world. The US doesn’t need any more car companies…maybe a few more should leave (exit market), and concentrate on more profitable markets like ASIA.

06/19, 1:32 AM

posted by:

armstealer

Poor ‘ol Henry would be rolling over if he had been around for FoMoCo’s (Jacques Nasser lead) acquisition of Volvo.. now selling to the Commies?

Veda- The problem with buying products from the Chinese is that they do not have what we call “Quality Control”, and Karlboylove’s plastic utensils probably contain lead.

06/19, 9:23 AM

posted by:

ricky_b

I hope someone can save Volvo. I like the look of their products, though a bit pricey and poor fuel economy. If Ford would have had better vision, they would have brought over the diesel. Those are the powertrains that have had better development in Europe. Oh, well.

 
 
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