Central Govt gives Geely the nod to buy Volvo

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geely volvo 300x147 Central Govt gives Geely the nod to buy VolvoThe Chinese central government has finally given Geely the penultimate nod to buy the stricken auto maker Volvo from its current owner, Ford.

The Shanghai securities journal is reporting that Geely have received official notification from the NDRC (National development and reform committee) the official government organ for overseeing Chinese acquisitions totalling 100 millions USD or more.

Previously China Car Times learned from a Geely executive that Geely plans to keep Volvo as independent car business, but use Volvo’s expertise to further Geely’s technology and growth in the Chinese auto market.

Geely is expected to put in an offer of 2 billion RMB for Volvo, down from the 6 billion that Ford paid for Volvo several years ago. CCT has also been hearing rumours that Volvo maybe picked up for as little as 500 million cash, although that is likely to be untrue.

CCT will keep you updated with the latest, despite the naysayers saying otherwise.

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11 Comments

  • John
    July 30, 2009

    What will their stock be at if this goes through?

    2 bucks for HK stock and currently 25 cents for Pink Sheets… Any thoughts?

  • Marcus
    July 30, 2009

    Go to hell Geely. Chinese will never buy Vovlvo…

  • felipe
    July 30, 2009

    hahaha!!it feels so good that one country has money now,except for china!!thank you world crisis!!!!!!

  • felipe
    July 30, 2009

    no*

  • Joe
    July 30, 2009

    Two billion RMB? I thought it was 2 billion USD.

  • Kyouya
    July 31, 2009

    Good for Ford, REALLY bad for Volvo.

    The security face of Volvo will be ruined.

    *sigh*

    ……….

  • Ed
    July 31, 2009

    Awesome! nice/smart move, Geely.

  • Klaus
    July 31, 2009

    Geely and Volvo – does it match?
    Volvo has FORD platforms but is loosing money. Biggest single market for Volvo is USA. How to do the turnaround? With Geely know how and technology? Waiting for better sales in the USA?
    Only possibility would be to replace US market with China. Invest money in China to build Volvo cars here. But has Geely this capability?

  • felipe
    July 31, 2009

    klaus : volvo does make cars in china!! the s40 and s80 are all made in china,plus they wanna start producing the x60 in china soon!

  • Ragga
    October 2, 2009

    Wasnt Geely bankrupt earlier this year in March ???
    Where did they get the money from?? government bailout??
    volvo cars are value for money ! pity on the resale value !

  • sauzede
    November 1, 2009

    bonjour
    je me demande comment geely va gerer les relations sociales en Flandre: Volvo produit en effet les C 30 la S 40 la V 50 et le Xc 60 et Volvo est avec Opel l’un des premiers employeurs de la Flandre.L’usine a été crée dans les années 60. Vous remarquez que je parle de la Flandre et non de la Belgique qui un Etat confédéral (Flandre et Wallonie); les syndicats sont très à cheval sur le maintien des emplois en Flandre; le Vlaam Blooks fait entre 30et 35% des voix et veut l’indépandance. Comment geely qui n’a aucune expérience de l’Europe va gérer ce problème? Comment Geely va t il gérer Volvo une icone de la “scandinavité”( vous savez le respect des minorités, des femmes , du contrat social à la suédoise? Geely ne va til pas se comporter comme GM s’est comporté avec SAAB.Pour ma part je prefererai que l’UE barre la route à Geely

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