Geely Plans Volvo Factory In China
Not all too surprisingly, China’s Geely is planning to build a Volvo factory in China once the purchase of Volvo from Ford has closed, Bloomberg reports. The plant will most likely go up in Beijing, but just in case the Beijing government is not providing the adequate support, Geely has two other Chinese cities identified for the facility.
As far as the sale goes, Ford and Geely have agreed on “all substantial commercial terms.” A definitive agreement is planned to be signed by March 31, with the sale to be completed by June 30.
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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Geely?.....Geely,...Geely! Sorry!
I can't help but imagine if Volvo were GM owned. GM would be investing billions in China to build that factory, bleeding the rest of the company dry to do it and in the end only steal Chinese market share from themselves. Ford isn't brilliant... Volvo probably cost them $12-15B over the years, but at least they are cutting bait and getting something for it.
Why should the Chinese buy worthless American government bonds when they can obtain something tangible for their dollars? And the Chi-Coms are our enemies? In a saner world we'd all commit suicide. As the great statesman Pogo Possum said, "We have met the enemy, and he is us."