Confirmed: Volvo-Geely Deal To Be Signed Today
As predicted by TTAC, the sale of Volvo from Ford to China’s Geely will be signed this Sunday. A Volvo spokesman confirmed this today to Reuters. Details of the deal will be announced at a news conference in the Swedish city of Gothenburg.
The news conference, which may take place today or on Monday, “is to talk about the stock purchase agreement between Ford and Geely,” said Volvo spokesman Per-Ake Fröberg. “According to the plans, they will sign the agreement during the day,” Fröberg, said to Stockholm News.
Geely chairman Li Shufu arrived in Sweden on Saturday from China. Also present to sign the agreement will be Volvo Cars CEO Stephen Odell and Ford’s CFO Lewis Booth.
Chinese Vice-President Xi Jinping, who is in Sweden this weekend, is expected to be present at the signing. “But we can not confirm that,” said Fröberg. Additional security measures surrounding the event indicate the presence of a high government member. China’s National Radio sees Li Yizhong, Chinese Minister of Industry and Information Technology, attend the festivities.
On Friday, recalcitrant unions had caused last minute unease by withholding their blessing for the deal. The unions demanded more information about capital needs and the make-up of the management of Volvo.
On Saturday afternoon, the union representatives once again sat down in a meeting, this time with Ford’s CFO Lewis Booth. After the meeting, the unions “pronounced themselves satisfied,” as the Sidney Morning Herald reports.
“We have received all the information that we were looking for,” Glenn Magnusson, head of the Ledarnas union, told Sweden’s TT news agency.”As far as the unions are concerned, we are in favor of the agreement.”
Reportedly, the deal will net Ford $1.8b in cash, less than a third of what Ford paid for Volvo in 1999. It will also free them of a loss-making entity.
TTAC has been following this story, for over a year. Again, Ford is successful where cross-town rival GM fails. They can sell cars. They can sell companies. Stock watchers predict a big move of the Ford share at Monday’s opening.
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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