By on October 28, 2009

Geely came out on top. Picture courtesy sw-em.com

We nearly abandoned all hope (or fear) that China might buy a Western brand. The Ford-Volvo-Geely deal was on the ropes, supposedly over intellectual property worries. We didn’t believe it.

Finally, FoMoCo officially announced that they had inspected all the bids. Geely came out on top, says the Wall Street Journal.

China’s Zhejiang Geely Group Holdings Co. was bestowed the official title “preferred bidder for Ford’s luxury Volvo brand.” Apparently, Geely coughed up the better deal Ford wanted. Now the two sides will enter “more detailed and focused negotiations.”

Ford CFO Lewis Booth said that “any prospective sale would have to ensure that Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise, while enabling Ford to continue to focus on and implement our core ONE Ford strategy.” Not a word about safeguarding intellectual property.

Ford had also been in discussions with China’s BAIC and the Crown Group, led by former Ford director Michael Dingman. They are out of the race.

Get the latest TTAC e-Newsletter!

Recommended

8 Comments on “Geely Close to Closing Volvo Deal...”


  • avatar
    Buddha Belly

    China & Intellectual Property worries goes together like peanut butter & jelly.

  • avatar
    autonut

    That’s the end of Volvo. Buy, buy Volvo. I had 122 in the same off white as in the picture. Sad.

  • avatar
    v7rmp7li

    In Carmaker’s Collapse, a Microcosm of South Korea’s Woes
    NYTimes

    “Chinese company BOE got the technology they wanted. All we got was layoffs,” said Hwang Pil-sang, a Hydis worker.”

    “We trusted their promise to help us into the vast Chinese market,” Mr. Yang said. “In the end, they kept none of their promises, and they got what they wanted: our technology.”

    http://www.nytimes.com/2009/02/24/world/asia/24seoul.html?pagewanted=1&_r=2&ref=asia

    ——————-
    After chinese company get the technology they wanted. All volvo workers in sweden will layoffs.
    After chinese company get volvo technology, Chinese company kill US auto industry by cheap price volvo copys.

  • avatar
    TEXN3

    Maybe they could buy my 760 too.

  • avatar
    CarPerson

    WOW Talk about drama!

    Our Green Yuppie (GY) class has been on life support with the near death of Volvo, Saab, and Saturn. Glad to hear China is throwing them a lifeline.

    The Prius and Insight have been helpful but have not proven to completely satiate the GY market.

  • avatar
    autonut

    CarPerson , I disagree. Volvos were decent cars from 60’s to 2000. There was enough performance and handling for less money then BMW, Audi and Benz. Quality of their cars was even better then Japanese all through 60-70’s. Actually it Volvo that started to elevate quality and safety in auto industry.

  • avatar
    pb35

    Looks like I’ll be turning in my Volvo next year when the lease is up. My first and last. Sad.

  • avatar
    gimmeamanual

    Bertel, how does ChangAn figure into all this? Do you think a final sale to Geely means a merger/takeover/purchase of ChangAn is planned?

Read all comments

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • Jerome10: The CX-30 is a very good car, and very competitively priced for its class. Doesn’t surprise me in the...
  • ScarecrowRepair: There never will be flying cars, if the lift comes from pushing air down. A Robinson R22 is one of...
  • mcs: @snakebit: I don’t know, the TSA lines at MHT probably take less time than it does to pre-flight the...
  • Vulpine: If it weren’t so big, I’d probably order one myself.
  • Corey Lewis: I suspect it will handle like a G-Wagen superleggera. It would be truck-like and yet not as tippy?

New Car Research

Get a Free Dealer Quote

Who We Are

  • Matthew Guy
  • Timothy Cain
  • Adam Tonge
  • Bozi Tatarevic
  • Chris Tonn
  • Corey Lewis
  • Mark Baruth
  • Ronnie Schreiber