China's Geely Reaches Agreement to Buy Volvo From Ford

[alin89 9]

Chinese automaker Geely has signed a letter of intent to purchase Volvo from Ford, a Chinese news site is reporting today. The report cites anonymous sources in the Chinese government and no official word has come from Volvo, Geely or Ford, nor has it been corroborated by other sources, lending doubt to its accuracy.

According to the report, Ford and Geely are still working out many details of the agreement, including the transfer of technology, Volvo's marketing and market position and any layoffs that will stem from the sale. Volvo will reportedly move a production line to the Chinese city of Dongguan in the Guangdong Province. The report indicates that Geely has already gotten the OK from the city and has applied for land and a loan to build a new factory on, though big business deals in China require the approval of the federal government. No purchase price was reported.

The report says that Geely will invest US$10 billion in building the Volvo brand both in China and abroad. The first model to be built under Geely's watch will reportedly be the new 2011 XC90, at least one version of which will be built at the proposed new facility in Dongguan. It is not known how this deal, should it exist, will affect Volvo's partnership with Geely's rival Chinese automaker Chang'an.

Volvo has responded to the report with the following statement:

"An announcement related to the sale of Volvo Car Corp. would only come from Ford Motor Company. As of today, neither Ford Motor Company nor Volvo Car Corporation in Sweden has made any announcement regarding the sale of Volvo. Reports of such a sale by any media outlet are speculative and, therefore, are not accurate."

Sursa: http://wot.motortrend.com/6550590/industry-news/report-chinas-geely-reaches-agreement-to-buy-volvo-from-ford/index.html

[alin89 9]

Geely's Volvo procurement almost finalized

Geely's procurement of Swedish auto giant Volvo is approaching the final stage, the National Business Daily learned from Sweden . Volvo and its owner Ford Motor Company are expected to make the final approval as early as this month.

In addition to Geely, which will get the majority of Ford's stake in Volvo, a Swedish company will also acquire the remaining shares. Meanwhile, Ford will keep 10-15 percent of its presence in Volvo for the following 7-8 years, in order to facilitate the launch of new Volvo models.

Ford plans to sell Volvo at around 20 to 25 billion Swedish Kronas (2.528 billion dollars to 3.159 billion dollars), of which Geely will pay 15.6 billion Swedish Kronas.

Previously, the Volvo Engineers Union had expressed dissent about the deal and wished for a European owner instead of Chinese Geely, an opinion also shared by higher officials in the Swedish government. However, Ford's "package sale," which involves a local Swedish company, greatly eased the dissent.

Some experts told the National Business Daily yesterday that Geely's boss, Li Shufu, will not merge the two companies, but will keep Volvo's operation independent.

Regarding Volvo's XC90 manufacturing site in China, insiders from Geely mentioned that both Dong Guan in Guangdong Province and Tianjin Municipality are likely places. However, rumours spread earlier this month saying Beijing and Bazhou in Hebei Province may also be the host for the Swedish vehicles.

Sursa: http://english.people.com.cn/90001/90776/90884/6726464.html

[Guest teo_g]

In primul trimestru 2010 se va semna acordul pentru vinzare Volvo catre compania chineza Geely.

Credeti ca va fi afectata calitatea si notorietatea acestui brand prin aceasta tranzactie ?

[contdezactivat 613]

Mai sunt si alte topicuri cu acelasi subiect.

Inchis.