Chinese Government Lends Strong Support (And Money) To Volvo Deal
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.
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 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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Speaking of government support, GMAC gets some more: http://www.freep.com/article/20091231/BUSINESS01/912310389/1322/U.S.-to-pump-3.8-billion-more-into-GMAC
97escort: Unfair comparison. The Chinese are buying an established car brand that can be very profitable with direct access to Chinese labor and the Chinese new car market. The US government is buying failed mortgages and failed car loans. Not the homes/cars, just the loans. Oh did I mention that the US government is spending way more for their purchase? We are sooo screwed.....