Report: Ford, Geely talks over Volvo stumbling - LeftlaneNews
01/22/2010, 10:59 AM
By Andrew Ganz
Although Ford announced late last year that it had reached an agreement to sell its Volvo unit to China’s Zhejiang Geely Holding Group Company Limited, a new report out of Sweden suggests that the talks are not going smoothly.
The positive signs given earlier have been exaggerated,” Joran Hagglund, state secretary at Sweden’s ministry for enterprise, told Dagens Industri after visiting Geely chairman Li Shufu.
Geely has apparently studied Shanghai Automotive’s failed effort to take over South Korea’s Ssangyong Motor Company and is now concerned about the viability of its plan to acquire Volvo.
The Swedish paper says that the biggest hurdle is Ford’s reluctance to relinquish Volvo’s intellectual property rights to Geely. Most analysts have agreed that the biggest coup for Geely in the potential Volvo sale is that the Chinese automaker would acquire insight into Volvo’s advanced safety and engineering processes.
“The only thing I can say is that Ford and Geely do not agree,” Hagglund said.