Volvo Unions Call For Geely Investigation

by Thor Johnsen

December 11th, 2009 11:35 AM

volvo unions call for geely investigation

Corresponding with news that Ford and Geely are close to closing the Volvo deal, Volvo’s unions have expressed skepticism towards Geely, even going so far as to ask that the company be investigated. An ownership company based in tax havens, a history of trademark theft, and minimal transparancy have all worried unions within Volvo. Swedish Engineers at Volvo and the Metalworkers have expressed worries over the lack of information regarding Volvo’s future within Geely. “There’s a great information vacuum” says Magnus Sundemo of the Engineers. “We know very little about what the consequences will be if or when Geely takes over Volvo – We need to have more information, and we need reasonable time to examine the information” he continues.

There are several questions around Geely according to the union, one being the company structure. The company Ford has chosen as the preferred bidder, and possibly buyers of Volvo, is Zhejiang Geely Holding Group – a privately held Chinese Company, which in turn owns Proper Glory Holding (what a name!) registered in Virgin Islands (they must have some humor at Geely…). Proper Glory owns 51% of Geely Automotive Holdings Ltd, the car manufacturers. Geely Automotive is listed at the Hong Kong Stock Exchange, and has its HQ in the Cayman Islands. A further eight subsidiaries are registered in Cayman Islands, and seven more in The Virgin Islands.

“This in not something that enhances the image of a ‘nice’ company, and the question is where Volvo is positioned in this structure. An unlisted company in Cayman Islands needs no tranparancy, and no accountability. That worries” says Magnus Sundemo, who also complains about the lack of good information around the financing of the deal.

In a meeting between Volvos unions and Geely management last week, the unions demanded there’d be hired a special employee-consultant to examine the deal. He should be granted 200,000 euros and 5-6 weeks to be able to examine the deal properly. Volvo management granted 50.000 euros and 2-3 weeks.

Volvo’s Olle Axelson comments: “Volvo and Ford have already answered all questions asked. These are just repeated questions.” John Fleming, CO at Volvo says he understands Volvo employees’ concerns, but assures them that Ford has been a good parent to Volvo, and is certain that Geely will be too. “Otherwise, we wouldn’t have chosen them. – But nothing has been decided yet.”

#Ford #Geely #Sale #Volvo

Comments

Join the conversation

2 of 16 comments

Philadlj on Dec 11, 2009

A Chinese automaker, up to no good? Naaaw...

Like Reply
Geo. Levecque on Dec 12, 2009

These workers have every right to be worried for there future, which after all the Machinery an everything else is transferred to China, it won't be the same Volvo for sure! I would suggest that the Workers get together and try buying out China, hardly likely I know but while they still have "jobs", I can see a lot of unemployed Swedish workers in the future, not a nice scene and what can Volvo owners expect here in North America?

Like Reply

Recent Comments

Kosmo Umm.....probably about halfway between the two sides' positions?Neither side can cast the first stone. The Big 3 have record profits, and the UAW's leader has a mixed agenda of 1) good deal for his members and 2) a megalomaniac's drive to a legacy.
Analoggrotto I bet a Goddess Mary Barra boudoir set would be enough to charm all of the UAW back to work.
Daniel J The Two Tier system was done on purpose. The UAW and the auto companies couldn't just shaft employees who, in essence, signed up before the financial meltdown. To stem their compensation, anyone who joined after got paid lower.This was done on purpose. The auto companies benefit because they cut costs and they also hope that eventually the new employees might dislike the deal the UAW make and possibly defect from the union when these same employees could join a non-union shop for more money.The UAW was hoping for the opposite, that these new employees would be mad at the auto companies and side with the union when it was time to re-negotiate.At this point, are the current Tier 1 employees going to take a cut? Can the auto companies afford to give the Tier 2 employees the same amount of money as the Tier 1?
Redapple2 UAW - Already overpaid. Relevant question. What are the transplants paid? Honda, Toyota, Nissan, VW. What about Tesla? What about Tier 1 and 2 auto suppliers. UAW should have been smashed when GM and FCA went bankrupt.
Redapple2 TV screens to run everything instead of knobs. Turbo 4 that poorly does the job of a V 6. I think i will turn away from new product and preserve what I have for 15 years. I m reaching that point.