Geely Keeps Volvo Unions Guessing On Money Issue
Sweden’s unions are on a hot trail. They think that –ohmygod- the Chinese government could be pulling the strings with Geely and Volvo. China’s Geely won’t say where they get the money for buying Volvo from Ford. Geely says its backers include Chinese banks. Sweden’s union leaders are concerned that the Chinese government may ultimately be behind the takeover. Well duh, most (if not all) Chinese banks are owned by the Chinese government. Kindof. Somehow.
Nevertheless, Sweden’s unions are determined to hire a consultant to “dig” into the financing question, Glenn Magnusson of the Ledarna union said to Bloomberg. “It was a sensitive question for the Chinese,” Magnusson said. “The answer we got was that Geely Holding is the main investor in buying Volvo. They didn’t answer more than that. We may not find out until the final phase of the negotiations.” If they give me the money (wire instructions on request) I can tell them now: The Chinese government stands behind its banks.
Can’t help asking: Everybody is begging their governments to donate money to the carmakers’ cause. And if China says “hao,” the Swedish unions throw a tizzy-fit?
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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