Geely Bails on Volvo Bid. Or Does It?
by
Thor Johnsen
Published: September 16th, 2009
Share
The autoblogosphere is alight: Geely has informed FoMoCo they’re no longer interested in buying Volvo. Turns out that a previous statement that Geely wanted to aquire 100 percent of Volvo PV was a solo play from a CEO of one of Geely Groups’ subsidiary companies, not Geely as a whole. Or was it? The Swedish punditocracy is viewing this one a tactical play from Geely to lower the price, in a “typically Chinese” fashion. Meanwhile, Ford’s adamant that Volvo is getting the old heave-ho. According to di.se, Fords’ Chief Financial Officer said “Die! Volvo! Die!” Skämt. In fact, Lewis Booth said . . .
More by Thor Johnsen
Comments
Join the conversation
Ford needed to sell Volvo for the money. Now it needs to sell it for their public image of returning to the right track. This includes saying things like "We need to gather our personell and financial resources around Ford, that’s why we’ll continue the process on a Volvo sale." but that doesn't mean they want to sell it for a bad price.
John Horner, Volvo is actually a luxury brand, you may not like it, but it is. The 700, 800 and 900 series were the cars that first brought Volvo to the near-luxury table. If you look at the current lineup the V70, S80, XC60, XC70, S40, V50, C70 and C30 compare quite well to the competition's mainstay models. The XC90 and S60 are getting a bit old but will be replaced shortly. If you are comparing feature for feature Volvo's will be right there. If you are comparing power, yes the Volvo lineup is lacking, but you have to remember that not everyone buys an E63 or an M5, most people but the base and mid range engines and to them Volvo's silky smooth T6 enigne compared very well. The ultimate test is the country club test. If you go to the country club in your Volvo,it won't be out of place, it won't be as flashy as a Jag, BMW or Merc, but it's a sensible near luxury option. A Volvo would be much more at home in that situation than a Chevy, Ford, Chrysler or even most VWs.
We may not agree with it, but at the moment Volvo is a luxury/near luxury brand. If you consider the Brand's reputation in Japan, the EU and China, then the this reputation is even more aligned with the Luxury marques. Keep in mind that this "luxury brand" was not created by Ford, it started well before Ford purchased Volvo in 1998. I think that while yearning upwards has it's pros and cons for Volvo, it was the only course open to them when this upwards mobility began with the 700 series. Labour costs in Sweden and Belgium combined with the cost of importation conspire to make a Swedish economy car an impossibility unless it was made in Mexico. Remember that Volvos had never been cheap cars in the way Saabs of the same era were, they were stable, solid reliable transportation that was comfortable and safe. Their "brand" of luxury, playing on the Scandinavian design is probably one of the few courses open to them and has until now served them fairly well. As Sajeev points out, Volvo would have been a good member in the Ford international luxury game, but as the only member in that family left they really don't compete in the same way Jag did or Lincoln could once again. They are a niche player and if they stay true to their core they will remain one. The question I want to know if how will the Ford brands survive without someone's parts bin to dig from?
[...] http://www.thetruthaboutcars.com/geely-bails-on-bid-for-fords-volvo-or-does-it/Volvo is actually a luxury brand, you may not like it, but it is. The 700, 800 and 900 series were the cars that first brought Volvo to the near-luxury table. If you look at the current lineup the V70, S80, XC60, XC70, S40, V50, … [...]