Geely gunning for Volvo
According to CCT sources, Geely automobiles maybe one of the closest buyers for troubled brand, Volvo.
Ford top man, Mr. William Clay Ford Jr, and Geely’s charismatic CEO, Mr. Li Shu Fu have had high level talks recently regarding the sale of Volvo to Geely. Mr. Li has reportedly been beaming about his meetings, and dinners with Ford top brass, and enjoys showing his photograph of him and William Clay together off to staff and visitors alike.
From what our sources tells us, Geely have put together the funds, and backing, required to buy Volvo from Ford, but will the Chinese government play ball with Geely’s big aspirational plans? The central government may ultimately put the brakes on Geelys plans, as the other big state owned car companies such as FAW, SAIC, and Dongfeng, may get a little jealous of an upstart privately owned auto manufacturer like Geely grabbing hold of Volvo. Ultimately, it may be that Chang’an, Volvo’s JV partner, who would be the most affected by any Volvo sale to Geely.
With Geely ready with the readies, could Volvo become part of the Geely Empire within a few weeks? We’ll have to wait until mid February before we hear anymore about the Volvo acquisition.
Tweet This
Share on Facebook
Digg This
Save to delicious
Stumble it
RSS Feed
Bad idea imo; they should try to grow organically rather than trying to 一步升天. They’ll have cultural clashes, redundant management structure, redundant infrastructure, and probably every other corporate problem you could envision. Plus, it’ll all be compounded by the fact it used to be run by Ford… hardly a model company. Of course I understand it’s probably for the sake of prestige, technology transfer and a gain in market share, but meh, those aren’t typically good ideas for M&A. Not like their bankers will tell them that though! Geely should stick to buying assets that Ford is divesting rather than acquiring the entire company. It’d probably be way cheaper to just pick up some R&D departments Ford wants to close down than being stuck with the bill for all the rest of the company.
geely is a crappy car company that will ruin volvo.
ye I agree with ARON. Chinese companies like Geely are really impetuous.
Geely or any other Chinese car company should acquire the western auto companies that have the technology and manufacturing and logistics know how that they still lack. Just out of curisity, how many posters here are actually based in China. I live in New York City. Most of you seem to be jealous of the Chinese auto companies inevitable rise in the world. Think of where Toyota was 40 years ago or Hyundai was 20 years ago. I usually LMAO when I read many of the comments here and the China section of Autoblog.
@ GO RED: Believe me, I’m hardly biased against China. It’s just that it’s frustrating to see their fledgling industry taking (what seems to be) the wrong moves. In my opinion, SAIC’s idea for acquiring Rover was done properly. They avoided a complete takeover, but bought IP and assets by bits and pieces, such as the power train, chassis tech, R&D centers… no point in paying for all the other overhead. This was a far more efficient route than what Geely is trying to do here. How often do horizontal mergers actually succeed anyways? Lots of companies do it, very few actually succeed. Just look at all the mining giants who are floundering in debt because of their absolutely reckless acquisitions.
.
And I totally concur with the sentiment on the quality of comments here and elsewhere. Mostly just heresay, outright racism, and other forms of Sinophobia. It’s disgusting.