Geely to buy Volvo from Ford: reports

Discussion in 'European Cars' started by CitroenSM, Jun 18, 2009.

  1. Quote from chinadaily.com.cn;

    Geely to buy Volvo from Ford: reports

    (Shanghai Daily)
    Updated: 2009-06-18 09:52

    Geely Automobile Holdings has reached a preliminary agreement with Ford Motor Co to purchase its Volvo unit and plans to produce a new Volvo model in Guangzhou Province, according to media reports Wednesday.

    The Geely acquisition, following that of another firm's earlier bid to purchase a foreign brand, is yet another opportunity for domestic car makers to expand into the global market.

    China's Sichuan Tengzhong Heavy Industrial Machinery Co announced recently it was to acquire General Motors Corp's Hummer brand.

    Zhejiang Province-based Geely aims to purchase Volvo and build a production line for the Volvo XC90 in Guangzhou Province's Dongguan City, the National Business Daily reported yesterday.

    "It's the right time for Chinese firms to make overseas acquisition during the slowdown in the economy," said Jia Xinguang, chief analyst with the Chinese National Automotive Industry Consulting and Development Corp.

    The value of the deal is not known but Volvo, which was bought by Ford for US$6.49 billion, won't be sold for less than US$3 billion, according to Jia. Geely couldn't be contacted for comment Wednesday.

    Representatives of Geely, one of China's biggest private auto makers, have already visited Volvo's headquarters, industry sources told Shanghai Daily.

    The purchase will help Geely expand into the medium and high-level markets, Jia said.

    Compared to American brands, European brands are better known by Chinese consumers, he said.

    Geely sold 101,171 units between January and May, a jump of 57.8 percent year on year, because it had tapped into the second and third-tier cities after the government handed out subsidies to encourage people in rural areas to buy cars.

    The China Passenger Car Association predicted this week that vehicle sales in the country would grow 17 percent this year from 2008, outpacing the 6.7 percent rise last year.
     
  2. you can't buy safety.
     
  3. the death of Volvo.
     
  4. When I think about Geely buying Volvo, I see tons of crappy re-branded Chinese cars being sold all over the world. <A BORDER="0" HREF="http://www.supercars.net/PitLane?displayFAQ=y"><IMG BORDER="0" SRC="pitlane/emoticons/sad.gif"></A>
     
  5.  
  6. Koenigsegg should do it.
     
  7. bad news
     
  8. I don't see how it's so different from Tata buying Jaguar.

    Unless they're really stupid and start telling Volvo how to make cars. Geely cash + Volvo could really drive the company forward.
     
  9. Is anybody surprised by the length of those corporate names?
     
  10. This fails more than that Chinese company buying Hummer.
     
  11. Oh shit.

    Could be bad.

    Or this could turn out ok like the Tata/jaguar deal.
     
  12. I rather see Volvo being bought by Tata.
     
  13. I also don't see how that could be a bad thing for Volvo. If anything, Geely is the one that will benefit. Just watch the quality of their cars improve.
     
  14. Fair point. As long as they just give them money and don't interfere with car production I guess. I reckon geely will just base most of their new cars on old volvo platforms actually.
     
  15. Oh crap, Geely sucks, even by Chinese standards.

    Why aren't there any good Chinese carmakers buying the good companies? Like FAW Benteng Hongqi or so.
     
  16. PLEASE #$%#ING NO!!!
     
  17. Hmmm. There's nothing on Aftonbladet about this...
     
  18.  
  19. #20 CitroenSM, Jun 24, 2009
    Last edited by a moderator: Apr 25, 2016
  20. #21 Fump, Jun 24, 2009
    Last edited by a moderator: Apr 25, 2016
  21. #22 henriksjostedt, Jun 24, 2009
    Last edited by a moderator: Apr 25, 2016
  22. True.
     
  23. Ya, it's pretty ridiculous. Everyone maeks fun of it.
     
  24. damn kinesers
     

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