Geely cleared for Volvo purchase??
As predicted by CCT earlier this week, Geely look to be in the clear to purchase Volvo from Ford. Initial rumors indicated that Geely had the go ahead from their supporting banks, but were lacking in moral support from the central government. (It is rumoured in certain circles that the central government are mildly embarrased of Geely)
Geely today received permission to study the possibilities of acquiring Volvo from China’s National Development and Reform Commission (NDRC). The NDRC is essentially a central government organ that oversees economic policy for the PRC, and oversees any large investment by Chinese firms into foreign companies
Since the news broke in the mainstream Western media of Geely’s approval to buy the stricken auto maker, Geely officials came out to deny any purchase of Volvo. Geely are also reportedly working on other acquisitions, but these remain secret.
The acquisition of Volvo by Geely would mean that Geely would get hit by short term losses in the USA and European markets, but in the long run Geely would gain a massive leap over its nearest competitors with the addition of Volvo technology, which would bring Geelys own made cars upto (and beyond) world standards within a very very short time.
Volvo sold in past nearly 50% of it cars in the USA. There is no need to talk about the US car markt any more. The only concept would be to increase the number of cars produced on Volvo platforms which is in our days FORD platform. If someone sees the possibility that Geely make about half to one million cars on new Volvo / Geely platforms then it would be a only good idea to buy VOLVO in case there is enough cash to compensate the losses of VOLVO for the next years.
I really think a takeover by Chang’an would make a lot more sense. I really question Geely’s ability to take on Volvo or do anything with it.
Geely don’t want to buy volvo though, Geely should just grow organically instead.
Acquiring Volvo technology, inc up coming R&D would lift Geely onto the world stage within a year, and would leapfrog their competitors in terms of quality, and safety within 2 years.
The Geely CEO is a smart, smart man.
Everyone is embarrassed by geely.
Geely is just a copy rejected company that the Chinese government should just ban. Chery is the only company that is going in the right direction and they should be the one buying vovlo.
This would help Volvo, by giving it a leg up on competition in the Chinese domestic market. It would help both organizations by giving them something they need: on the one had, a market, and on the other, improved engineering and technology expertise. Makes sense to me.
As a former Volvo owner (S-70SE and a XC90) I hope that Geely – if they are serious about Volvo – maintains the Volvo ethic of engineering and producing cars that are not only built intelligently (ensuring user-replaceable components are cheap and easy to replace, car is sturdily built, etc.) but also built with occupant and pedestrian safety in mind. I’m pretty sure that’s something mainland China could use in spades.
GREAT GOD NO!!!!!!!!!!!!
RETURN VOLVO CARS TO SWEDISH OWNERSHIP.
GOD DAMMED AMERICAN BUSINESS CRAPPING EVERYTHING UP!!!
NO!!!!
Volvo is an evergreen brand, a well-spring of safety innovation that won’t end. Volvo is all about Safety and Family. The brand doesn’t do “bling” or gas mileage. Volvo adds instant legitimacy to anyone purchasing them. Ford had legacy and used Volvo like a cheap $2 _hore. Volvo is Cinderella and anyone with the scratch and can put the right people in place and allow the Vikings to run the business, they’ll be pleasantly rewarded.
I THINK GEELY IN GOOD FINANCIAL CONDITION TO PURCHASE VOLVO. HOWEVER THERE NORTH AMERICAN EXPERIENCE IN THE DETROIT AUTO MARKET PUTS THEM IN THE SIMULATE CATAGORY. WILL THE GROWN UP AUTO MANUFACTURES ALLOW THIS PURCHASE TO GO THROUG? YES…..IF THERE ARE NO OTHER NORTH AMERICAN MANUFACTURES COMPETING. IF GEELY IS COMPETING WITH ANOTHER CONTINENT, I.E. EUROPE (BMW) ASIA (NISSAN OR TOYOTA)IT IS VERY POSSIBLE THE ACQUISITION MIGHT HAPPEN.
As with any Chinese venture, Neely will gut Volvo Cars AB, more than likely kill all operations outside of China save for retail sales, and build some sort of crappy Kia with a Volvo badge on it. What a culture clash. An 80-year old Swedish auto company that dies in soul and intent at Chinese Auto Industry Hands. I can only condemn Volvo AB for selling it to Ford. And we can only blame the stupid Americans (Ford) and their notion of ‘business’ for this tremendous blunder and value loss. China does NOT build value for its customer. China, like India, only thrive at the corporate tax relief provided by the U.S. (See U.S. Federal Tax Code Section 530) and the EU while the individual tax payer hold the debt while the stock markets steal deftly away with the money. We’ll call that AMERICAN COMMUNISM.
Buy as soon you can the last real VOLVO. Chines are out of car bussiness. Will be like a bicicle after they start bulding Volvo.
Arguably, the last real volvo was pre-Ford involvement.
geely purchase of volvo is brilliant,it gives them instant access to 2,500 established dealerships,world wide.
they have great vision of the new auto world.
i beleive they will improve the volvo brand.
the stock is a great value right now and will continue to be long into the future.
as buffet says find a good company and try to take a large position.
my crystal ball tells me to aquire and hold this stock.
i think if you dont get in now you will have missed a great opportunity!