Chinese Government Lends Strong Support (And Money) To Volvo Deal

Bertel Schmitt
by Bertel Schmitt

While Tengzhong is still waiting for government approval for its Hummer purchase, Geely can’t complain about a lack of official prop up for its planned purchase of Volvo from Ford. Geely said today to Reuters that they have strong support from the Chinese government, financial and otherwise.

“Without government support, the Volvo deal could not be done,” Gui Shengyue, chief executive of Geely Auto said at a media briefing in Hong Kong on New Year’s Eve.

Reuters reported on December 1 that Geely was seeking at least $1 billion in loans to finance its $1.8 billion bid for Volvo. Three major Chinese banks including one policy lender have agreed to underwrite the deal.

Bertel Schmitt
Bertel Schmitt

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=""> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href=""> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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