Ford Inside News banner

1 - 6 of 6 Posts

·
Registered
Joined
·
2,900 Posts
Discussion Starter #1

Volvo sale deal hits snag, Geely chairman tells paper


HONG KONG (Reuters) -- Zhejiang Geely Holding Group Chairman Li Shufu indicated talks to buy Ford's Volvo car unit had hit a snag due to problems at Ford Motor Co., but continues to expect to complete the deal, a newspaper report said on Friday.
"We're ready to seal the deal," Li told the Wall Street Journal on the sidelines of a ceremony at a company-affiliated university in Beijing.
Li said the situation was changing constantly and the negotiation process very tough.
"If the deal fails, the problem is not on our side. We have not violated any part of the agreement," he said, without specifying what the problems were.
Zhejiang Geely, the parent of Geely Automobile, had aimed to complete the purchase of Volvo for up to $2 billion by May, according to a document seen by Reuters.
Geely's spokesman told Reuters on Friday that the company's aim to sign a sales and purchase agreement by the end of March and complete the deal in the second quarter had not changed.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100319/ANE/303199998/1131#ixzz0idWfsHY1
 

·
Content Admin
Joined
·
950 Posts
The issue must be iterllectuctual property rights. Volvo is the last block for the Chinese to enter the international market. Safety.
Ford obviously does not want to give that up. Its like suicide, becouse you know, chinese predatory practices when it comes to exports.

It is insane that Ford or GM for that matter would consinder selling to the Chinese.
 

·
Registered
Joined
·
334 Posts
I'm still hoping that Ford might keep Volvo after all. The brand is starting to develop some styling mojo with the sweet looking XC60 and next gen S60 designs (which easily rival anything in their segments from a design perspective, in my opinion). It would be a shame to see the brand fall under Chinese control while such great looking products are making it to market. Besides, I would assume that Volvo would give FoMoCo an accepted premium brand in the Euro market (a market where American and Asian premium brands seem to struggle; Europeans seem to be extremely loyal to their "homegrown" brands). Volvo may not be able to rival BMW or Mercedes in that market, but I think it could eventually be tweaked to effectively take on Audi. I know FoMoCo claims that Titanium trim Ford brand products allow the company to have a presence in the premium end of the market, but it seems like the Ford brand would still have some limitations in regards to how far upmarket it can go. It seems like a tweaked Volvo brand could still be used to stretch FoMoCo a little further upmarket in Europe.
 
1 - 6 of 6 Posts
Top