Volvo Could Be Chinese By Next Week. Maybe
Things did quiet down since March after Geely signed the contract to buy Volvo from Ford. A lot of people think Geely already owns Volvo. Geely doesn’t own Volvo until the deal is closed. But Geely might own Volvo as early as next week.
China’s Ministry of Commerce (MOFCOM) approved the deal, if Bloomberg is not mistaken. Reuters says the deal could close as soon as next week. Not so fast, says Tradingmarkets. They reached an official at MOFCOM’s publicity department, who confirmed the approval. Tradingmarkets also reached a Geely spokesman who said that “the acquisition is expected to be completed in the third quarter this year.”
Deal closed or not closed, Geely has already announced who will be in charge. Geely’s chairman Li Shufu will become chairman of Volvo Cars after the acquisition. Hans Olov Olsson, former Volvo president will be appointed its vice chairman, said a recent Geely statement cited by the Wall Street Journal and others. According to Chinese customs, the #2 guy makes the important day-to-day decisions, while the #1 guy looks good and shakes hands at the all-important group shots.
As a former Volvo owner, I wish Ford had kept Volvo, but I reject the idea that Volvo should even try to play in the BMW/MB/Audi sandbox. That was Ford's mistake. Volvo should make nice, affordable European designed cars, like VW does (and Volvo did). They should cost just a tiny bit more than a similar Ford branded car, and they could build them here if needed. An S60 should carry a slight premium over a well equipped Fusion for example, but cost much less than the big 3 Germans. Buick is going after that space right now with the Opel based cars (which I think GM could sell scads of stateside if it badged them as Opels instead of Buicks).
> "Buick is going after that space right now with the Opel based cars (which I think GM could sell scads of stateside if it badged them as Opels instead of Buicks)." GM has been selling Opels stateside for years as Saabs, and boy did they screw that one up.
Ummm...no. They sold SAABs as SAABs here in America. GM did attempt to sell several Opels as either a Cadillac (the Cetera...great car in Germany, but watered down here in the States), a Saturn (the Astra...which I love, but it died on the vine) and is now selling one as a Buick (Regal...which I'm hoping will be successful). Granted, SAAB and Opel shared a ton of components, but SAABs weren't badge-swapped Opels...
Ford by selling Volvo and others too, no wonder they are making big money, good for Ford but bad for people who enjoyed Volvo when it was a Swedish Car but when Ford took over the Car part of Volvo, things went down hill fast and no Ford will not take Volvo back or any of the other Cars they bought on a whim like Jaguar and Land Rover, time to move on!