Geely Close to Closing Volvo Deal

Bertel Schmitt
by Bertel Schmitt
geely close to closing volvo deal

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.

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4 of 8 comments
  • CarPerson CarPerson on Oct 28, 2009

    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.

  • Autonut Autonut on Oct 28, 2009

    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.

  • Pb35 Pb35 on Oct 28, 2009

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

  • Gimmeamanual Gimmeamanual on Oct 28, 2009

    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?