Geely becomes Volvo’s new master
According to auto.sohu.com, Ford and Geely autos have already struck an agreement to sell Volvo to the privately owned Chinese automaker. Auto.sohu.com says that Vovlo will be relocating a production line to Dongguan city in Guangdong where the first Volvo under Geely stewardship will be made, the first model to be made by a Geely owned Vovl will be the Volvo XC90 SUV.
Details are still sketchy, but it appears that an agreement has to be reached about the details of the purchase, which will also include a technology transfer to Geely. Geely also needs to make clear its intentions for the Volvo brand once they take ownership.
Geely have apparently received the support of the Dongying local goverment to bring Volvo production to the area, furthermore Geely have already applied to the local government for land, and a loan to build a new production facility in the area.
On top of the buying price, Geely are expected to invest a further 10 billion USD into Volvo, to build its brand and to further the brand within China and outside. Out of the Chinese car manufacturers, BAW, Chery, Chang’an, and Geely all had interest in buying Volvo, but it seems that Geely have come out on top this time.
It is still unknown what will happen to the Chang’an-Volvo joint venture once Geely officially takes over the Volvo reigns later this year.
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If you predicted this would happen seven years ago, when I first laid eyes on Geely’s Daihatsu Charade knock-off, I might have laughed out loud.
You can write this article off as a false rumor based on the fact that it claims that 1. Geely would move production line to China <= Socialist Swedish government would never approve this. Any bidder must agree to keep all Swedish lines open before getting a Swedish government approval. 2. Geely would inject $10 billion into Volvo. <= Where is Geely going to come up with $10 billion?
Can we get a link(s) to the source(s) please?
The Sohu article says nothing in certain terms.
The source is here :
http://auto.sohu.com/20090617/n264575631.shtml
Auto Sohu says there source is from News Net Shenzhen
Is this just blowing smoke? If this is true. Look out! Any other news?
Everyone involved including the Swedes would have to be pretty desperate to let the line move fully to China. Kind of hard to believe they would let it go.
$10 B US is cannot be right
http://www.chinadaily.com.cn/china/2009-06/18/content_8297123.htm
“Socialist Swedish government would never approve this.” Just for the record, Sweden has a conservative government since the election 2006 but also they would like to secure local jobs. From a Swedish technology perspective a Chineese owner would be negative, few high tech vendors to Volvo like to see their technology get copied. The products produced by Geely today are not very exciting so the definitely needs western compence to do what the Japaneese did in the 70 – 80s.
It remains to be seen what European consumers will think of a Chinese owned Volvo. It will be in the new owner’s very best interests to keep Volvo Swedish in the same way aas Tata have kept Jaguar British. China and Chinese cars have such a low standing in Europe that any perceived connection could seriously damage Volvo’s future, especially at a time when they’re doing pretty badly anyway. I hope the new owner is clever enough to do more than just come up with the asking price.
Tata has a 100 year history of excellence. Most of it is unknown in the west, but that doesn’t take away that it could be an effective steward for LR. Jag is such a money loser that nobody can save it. Geely isn’t. Like all Chinese car companies they are copying and producing crap. I can’t see them being able to continue Volvo’s safety record.
Geely buying Volvo, ripping off a few key plants, and then copying Volvo for the chinese market, yes, I could believe that.
“Tata has a 100 year history of excellence..”
Yep. We Were Born Yesterday.
@charlie
“Tata has a 100 year history of excellence..” Bwahahahhahahahahhahahhah!!!!!!!!!
Indian retard with an IQ of 81.
Volvo just came out and said this report is “speculative” and “inaccurate.” Way to jump the gun.
so this is just rumour ? lol what’s the point of buying anyway ? why not grow organically ? like what Toyota and Honda did. Geely lol the name is funny, Geely Volvo
“Tata has a 100 year history of excellence.”
sorry I can’t take this seriously, from what I heard Tata was forced to withdraw from the Caribbean regions due to very bad sales and quality problems, it is present in South Africa but it is low profile and have the same problem, in the recent South Africa auto report magazine, they did a comparison between the Chinese Great Wall Motors pickup and a Tata and Mahindra pickups, the Chinese Great Wall won hands down, both Tata and Mahindra got very bad reviews. The Chinese cars have low reputation and they have higher reviews than Tata and Mahindra.
Charlie is such an idiot, shut the hell up and stop spreading your shit. Tata is shit, Chinese cars are wayyyy better.
after reading this blog entry, I invested a lot of money in Geely stock. I hope you are saying the truth and it’s no stupid rumor.
Tata better than Geely??I don’t think so…Heck Tata vehicles sucked badly even if its got Merc technology in it….
Hope that this buyout will benefit both parties..
For the record I think Jaguar will survive. They are now putting together a great range of cars and finally showing that British doesn’t necessarily mean old fashioned. So long as financing can keep up for the next 5 years I think they will have a strong future.
Any news about the purchase of Volvo?
Ford seems to be denying all rumors.