Ford Inside News banner

1 - 16 of 16 Posts

·
Mercury C557
Joined
·
22,734 Posts
Discussion Starter #1

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.
 

·
Premium Member
Joined
·
372 Posts
regardless of the outcome I hope that Both parties will either come to an agreement that makes sense for both sides or that Ford will end the talks and find a more suitable buyer for Volvo because unlike Saab (GM's swedish brand) Volvo does have a solid reputation for there safety innovations and Volvo also has a more diverse product line than Saab and as such ford should be careful with who they give Volvo to. Only time will tell though and we shall see what the next step for Volvo will be
 

·
Registered
Joined
·
231 Posts
If Geely doesn't work out, Ford should keep any usable parts, i.e. research, that make sense and liquidate the rest of Volvo. This stops the ongoing losses and allows Ford to increase its focus on One Ford.
 

·
The Spaminator
Joined
·
5,791 Posts
If Geely doesn't work out, Ford should keep any usable parts, i.e. research, that make sense and liquidate the rest of Volvo. This stops the ongoing losses and allows Ford to increase its focus on One Ford.
Not a good idea. Volvo is much more solvent than Saab.

If it doesnt work out for selling, I would say...

Intergrate more, build Volvos where you sell them. Ex. Volvos sold in the US should be built here if theres enough volume. Unions might be mad in Sweden but what choice do they have?



100% free webcam site! | Awesome chicks and it is absolutely free! | Watch free live sex cam - easy as 1-2-3
 

·
Premium Member
Joined
·
372 Posts
ideally I'd like to see Volvo sold to someone/anyone other than the Chinese
but
the One Thing Ford Must NOT do is let this drag on and turn into a farce-saga like GM is STILL doing with Saab!


And what a drama that is turning into. You can write a few good episodes for a soap opera series with some of the zany stuff that is happening over at Saab right now. First Koinegsegg was in the spotlight and then they retracted there bid, Then Spyker came into the picture and so far their bid is not really adding up to much of anything and now all of these smaller bidders are trying to go after Saab as well It's one twist after another with that sale.

Personally I'd love to see Ford find a buyer for Volvo but the last thing they should do is let the Chinese get there hands on any useful parts of Volvo If that happens then that can and will create problems for Ford and the other automakers
 

·
Registered
Joined
·
231 Posts
Not a good idea. Volvo is much more solvent than Saab.

If it doesnt work out for selling, I would say...

Intergrate more, build Volvos where you sell them. Ex. Volvos sold in the US should be built here if theres enough volume. Unions might be mad in Sweden but what choice do they have?
I didn't say anything about Saab. The degree of solvency doesn't matter. A money loser is a money loser. If Ford can't make it profitable it's time to cut its losses and move on. Ford sells more F150s in the US than Volvo sells globally. As Ford improves its vehicles Ford will continue to cannibalize Volvo sales. As the expression goes "when you find yourself in a hole quit digging." I stand by my original comment, keep the parts that add value to Ford and liquidate the rest if it can't be sold advantageously.
 

·
The Spaminator
Joined
·
5,791 Posts
I didn't say anything about Saab. The degree of solvency doesn't matter. A money loser is a money loser. If Ford can't make it profitable it's time to cut its losses and move on. Ford sells more F150s in the US than Volvo sells globally. As Ford improves its vehicles Ford will continue to cannibalize Volvo sales. As the expression goes "when you find yourself in a hole quit digging." I stand by my original comment, keep the parts that add value to Ford and liquidate the rest if it can't be sold advantageously.
The only way it could possibly work is if they put the Volvo cars the company into insolvency but keep the brand.



100% free webcam site! | Awesome chicks and it is absolutely free! | Watch free live sex cam - easy as 1-2-3
 

·
Mercury C557
Joined
·
22,734 Posts
Discussion Starter #9
I'm not all that informed but from the snippets I've read about the Swedish government's do-nothing stand on aiding EITHER of their auto Mfgs :mad:
I wouldn't mind at all if any surviving auto company(s) abandonned their operations in Sweden completely
to design & build closer to where their sales come from :p

The only way it could possibly work is if they put the Volvo cars the company into insolvency but keep the brand.
not sure I understand ^that
but
How about KILLING "VOLVO"
but keeping select Volvo vehicles & reskinning them for Global MERCURY?
...thinking (personally) of the C30 & new S60 mainly - they'd fit beautifully on either side, size-wise, of the Focus-based C557
 

·
The Spaminator
Joined
·
5,791 Posts
I'm not all that informed but from the snippets I've read about the Swedish government's do-nothing stand on aiding EITHER of their auto Mfgs :mad:
I wouldn't mind at all if any surviving auto company(s) abandonned their operations in Sweden completely
to design & build closer to where their sales come from :p


not sure I understand ^that
but
How about KILLING "VOLVO"
but keeping select Volvo vehicles & reskinning them for Global MERCURY?
...thinking (personally) of the C30 & new S60 mainly - they'd fit beautifully on either side, size-wise, of the Focus-based C557
I was saying, Kill Volvo the Company...but not Volvo the brand. Like now Mercury is a brand owned by the Ford Motor Company while Volvo is a brand owned by Volvo Cars which is owned by Ford Motor.

I other words, no more middle man.



100% free webcam site! | Awesome chicks and it is absolutely free! | Watch free live sex cam - easy as 1-2-3
 

·
Registered
Joined
·
2,900 Posts
Selling to the Chinese is a bad idea. I was reading that Big Ed has demanded that Russians be kicked out of any Saab bidding. I guess the whole Opel situation made him wake up quick.

The whole situation is about IP. Chinese have no interest in Volvo. I think even the Hummer sale will fall through. At the heart of Russians and Chinese bids is a desire to obtain IP info from the west.

Make no mistake. Just look at how Tata is agressively moving into Europe shortly after taking over Jaguar. They have access to Jaguar Engineers.
 

·
Mercury C557
Joined
·
22,734 Posts
Discussion Starter #12
posting this here cuz I'm not quite certain that the "Deal" includes more than dealers, factories, & stationery ;)
and when the Chinese find out. . .


Rumor: Ford to sell Volvo by February 8 for $1.8b - LeftlaneNews
01/25/2010, 3:13 PM
By Andrew Ganz

Although last week’s reports out of Sweden and Dearborn, Michigan, indicated that Ford and Geely were struggling to come to terms over the proposed sale of Volvo, a report today suggests that things are moving more smoothly towards the sale.

The Chinese automaker will reportedly pay $1.8 billion for Volvo by a February 8 target date, sources told China’s Economic Observer. That’s far less than the nearly $6.5 billion Ford paid for Volvo when it acquired the brand in 1999, and it’s a move that has left some analysts scratching their heads given the high level of technology Volvo has provided for Ford.

China’s National Development and Reform Commission has told local media that it approves of the purchase and representatives from the government are set to visit Sweden to help move the sale forward.

Geely is also likely to start assembling Volvo vehicles in China – presumably for consumption in the automaker’s new Asian market. The Beijing-area plant would probably begin building Volvo’s XC60 crossover to compete with the popular Audi Q5 and BMW X3. Currently, Volvo cars are built under license in China by Chang’an Ford Mazda, a partnership that dates back several years to when Ford had a major share in Mazda. Chang’an Ford Mazda will keep building S40 and long-wheelbase versions of the S80 for at least another 4-6 years.
 

·
Mercury C557
Joined
·
22,734 Posts
Discussion Starter #13
Geely head says Volvo talks on track; no deal yet - AutoNews
March 5, 2010 06:16 CET
BEIJING (Reuters) -- The parent of China's Geely Automobile Holdings said it has yet to sign an agreement in its bid for Ford Motor Co.'s Volvo unit, but added that its plan to purchase the brand is on track.

Zhejiang Geely Holding Group had previously indicated it expected to reach a formal deal last month, but company chairman Li Shufu said an official agreement had not been signed yet.

"We haven't reached a final agreement so far," Li told reporters on the sidelines of the opening of the National People's Congress in Beijing on Friday.

He added: "Everything is moving as planned."...

...Last month, Sichuan Tengzhong Heavy Industrial Machinery Co. withdrew its bid for General Motors Co.'s Hummer brand as the obscure Chinese heavy machinery maker failed to receive clearance from Chinese regulators within the proposed timeframe.

Geely had encountered "no difficulties" regarding the deal, Li said.

Zhejiang-based Geely is researching new energy cars, but no new products were expected within the next one to two years, Li said earlier this week.


-----------------
on a sidenote from
Munin @ Swedespeed:
...Li Shufu is a member of the Chinese People's Political Consultative Conference
(source: http://www.autonews.com/Assets/html/08_ancc/speakers.html), which is the closest thing China has to a second house. Together with the main legislative body, the National People's Congress, these two branches combined constitute what is known as "The Two Meetings." His membership in this body is one reason to take with a huge grain of salt any claims that Geely is independent or represents an example of free market capitalism.
 

·
Registered
Joined
·
1,062 Posts
Geely head says Volvo talks on track; no deal yet - AutoNews
March 5, 2010 06:16 CET
BEIJING (Reuters) -- The parent of China's Geely Automobile Holdings said it has yet to sign an agreement in its bid for Ford Motor Co.'s Volvo unit, but added that its plan to purchase the brand is on track.

Zhejiang Geely Holding Group had previously indicated it expected to reach a formal deal last month, but company chairman Li Shufu said an official agreement had not been signed yet.

"We haven't reached a final agreement so far," Li told reporters on the sidelines of the opening of the National People's Congress in Beijing on Friday.

He added: "Everything is moving as planned."...

...Last month, Sichuan Tengzhong Heavy Industrial Machinery Co. withdrew its bid for General Motors Co.'s Hummer brand as the obscure Chinese heavy machinery maker failed to receive clearance from Chinese regulators within the proposed timeframe.

Geely had encountered "no difficulties" regarding the deal, Li said.

Zhejiang-based Geely is researching new energy cars, but no new products were expected within the next one to two years, Li said earlier this week.


-----------------
on a sidenote from
Munin @ Swedespeed:
...Li Shufu is a member of the Chinese People's Political Consultative Conference
(source: http://www.autonews.com/Assets/html/08_ancc/speakers.html), which is the closest thing China has to a second house. Together with the main legislative body, the National People's Congress, these two branches combined constitute what is known as "The Two Meetings." His membership in this body is one reason to take with a huge grain of salt any claims that Geely is independent or represents an example of free market capitalism.
I would love to see Koenigsegg bid for Volvo
 

·
Mercury C557
Joined
·
22,734 Posts
Discussion Starter #15
^ I'd *love* to see anybody but the Chinese get Volvo!!!

Geely, Ford say they are on track to sign Volvo deal - AutoNews
March 17, 2010 - 9:01 am ET
LONDON/HONG KONG (Reuters) -- Zhejiang Geely Holding and Ford Motor Co. said they were still on track to sign a deal this month for Ford's Volvo cars unit, after a Chinese newspaper said Geely's planned $2 billion purchase faced hurdles.

Spokesmen for Ford and Geely said today that the plan remained to sign a sale and purchase agreement by the end of this quarter, and to complete a deal in the second quarter...


------------
so... 2 weeks :(
 

·
Mercury C557
Joined
·
22,734 Posts
Discussion Starter #16
but ^that^ was yesterday...

Geely Says Volvo Talks Hit Snag - WSJ
MARCH 18, 2010, 1:22 P.M. ET

BEIJING—China's Zhejiang Geely Holding Group Co. Chairman Li Shufu said he continues to expect to complete Geely's effort to acquire Ford Motor Co.'s unprofitable Volvo unit but indicated the talks have hit a snag because of unspecified problems at Ford.

Mr. Li said the auto maker has "done everything [it] can to prepare for the deal in accordance with the framework agreement" the two auto makers signed in December to allow Geely to acquire Ford's Swedish brand. The ball is now in Ford's court, he indicated.

"We're ready to seal the deal," Mr. Li said on the sidelines of a ...
 
1 - 16 of 16 Posts
Top