Volvo Unions Call For Geely Investigation

by Thor Johnsen

Published: December 11th, 2009

volvo unions call for geely investigation

Corresponding with news that Ford and Geely are close to closing the Volvo deal, Volvo’s unions have expressed skepticism towards Geely, even going so far as to ask that the company be investigated. An ownership company based in tax havens, a history of trademark theft, and minimal transparancy have all worried unions within Volvo. Swedish Engineers at Volvo and the Metalworkers have expressed worries over the lack of information regarding Volvo’s future within Geely. “There’s a great information vacuum” says Magnus Sundemo of the Engineers. “We know very little about what the consequences will be if or when Geely takes over Volvo – We need to have more information, and we need reasonable time to examine the information” he continues.

There are several questions around Geely according to the union, one being the company structure. The company Ford has chosen as the preferred bidder, and possibly buyers of Volvo, is Zhejiang Geely Holding Group – a privately held Chinese Company, which in turn owns Proper Glory Holding (what a name!) registered in Virgin Islands (they must have some humor at Geely…). Proper Glory owns 51% of Geely Automotive Holdings Ltd, the car manufacturers. Geely Automotive is listed at the Hong Kong Stock Exchange, and has its HQ in the Cayman Islands. A further eight subsidiaries are registered in Cayman Islands, and seven more in The Virgin Islands.

“This in not something that enhances the image of a ‘nice’ company, and the question is where Volvo is positioned in this structure. An unlisted company in Cayman Islands needs no tranparancy, and no accountability. That worries” says Magnus Sundemo, who also complains about the lack of good information around the financing of the deal.

In a meeting between Volvos unions and Geely management last week, the unions demanded there’d be hired a special employee-consultant to examine the deal. He should be granted 200,000 euros and 5-6 weeks to be able to examine the deal properly. Volvo management granted 50.000 euros and 2-3 weeks.

Volvo’s Olle Axelson comments: “Volvo and Ford have already answered all questions asked. These are just repeated questions.” John Fleming, CO at Volvo says he understands Volvo employees’ concerns, but assures them that Ford has been a good parent to Volvo, and is certain that Geely will be too. “Otherwise, we wouldn’t have chosen them. – But nothing has been decided yet.”

#Ford #Geely #Sale #Volvo

Thor Johnsen

More by Thor Johnsen

Comments

Join the conversation

2 of 16 comments

Philadlj on Dec 11, 2009

A Chinese automaker, up to no good? Naaaw...

Like Reply
Geo. Levecque on Dec 12, 2009

These workers have every right to be worried for there future, which after all the Machinery an everything else is transferred to China, it won't be the same Volvo for sure! I would suggest that the Workers get together and try buying out China, hardly likely I know but while they still have "jobs", I can see a lot of unemployed Swedish workers in the future, not a nice scene and what can Volvo owners expect here in North America?

Like Reply

Recent Comments

Thomas Same here....but keep in mind that EVs are already much more efficient than ICE vehicles. They need to catch up in all the other areas you mentioned.
Analoggrotto It's great to see TTAC kicking up the best for their #1 corporate sponsor. Keep up the good work guys.
John66ny Title about self driving cars, linked podcast about headlight restoration. Some relationship?
Jeff JMII--If I did not get my Maverick my next choice was a Santa Cruz. They are different but then they are both compact pickups the only real compact pickups on the market. I am glad to hear that the Santa Cruz will have knobs and buttons on it for 2025 it would be good if they offered a hybrid as well. When I looked at both trucks it was less about brand loyalty and more about price, size, and features. I have owned 2 gm made trucks in the past and liked both but gm does not make a true compact truck and neither does Ram, Toyota, or Nissan. The Maverick was the only Ford product that I wanted. If I wanted a larger truck I would have kept either my 99 S-10 extended cab with a 2.2 I-4 5 speed or my 08 Isuzu I-370 4 x 4 with the 3.7 I-5, tow package, heated leather seats, and other niceties and it road like a luxury vehicle. I believe the demand is there for other manufacturers to make compact pickups. The proposed hybrid Toyota Stout would be a great truck. Subaru has experience making small trucks and they could make a very competitive compact truck and Subaru has a great all wheel drive system. Chevy has a great compact pickup offered in South America called the Montana which gm could make in North America and offered in the US and Canada. Ram has a great little compact truck offered in South America as well. Compact trucks are a great vehicle for those who want an open bed for hauling but what a smaller more affordable efficient practical vehicle.
Groza George I don’t care about GM’s anything. They have not had anything of interest or of reasonable quality in a generation and now solely stay on business to provide UAW retirement while they slowly move production to Mexico.