Geely Steps Up Volvo Talks With Ford
After we reported yesterday that the talks between Geely and Ford about Volvo are intensifying, China’s Xinhua news agency runs a terse one-liner today: “China’s Geely Holding Group said Friday it was having a detailed and in-depth discussion with Ford over relevant terms and contracts about acquiring Volvo.” That’s it. Short, sweet, and to the point.
Apart from the seven point plan published yesterday, Gasgoo adds today that “Geely has said it will build a new Volvo plant in China with a capacity of 300,000 vehicles and will boost Volvo’s annual global sales to one million cars within five years from the current about 400,000 units.”
As far as the coveted IP goes, there seems to be some kind of a Chinese fire-walling arrangement under way. Volvo will remain a separate entity. According to Gasgoo, “Volvo will retain the rights for its licensed technologies, and its buyer Geely will get the right to use them.”
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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“Volvo will retain the rights for its licensed technologies, and its buyer Geely will get the right to use them.” Does that mean Ford will be paying Geely royalties in the future?
If it eventually comes to Volvo competing against Ford for the same customer, how much will Ford lose in comparison to the 2G USD gained from the sale of VCC to Geely.