#geely

Divorce Sunday: Mazda and Ford will dissolve their joint venture partnership in China by 2012, The Nikkei [sub] writes.

The Chang’an Ford Mazda Automobile Co. has been producing cars since 2006. The JV is 50 percent owned by Chang’an, 35 percent by Ford and 15 percent by Mazda.

“Ford is trying to get the deal done with Zhejiang Geely Holding Group within the next several weeks,” a Ford spokesman said to Dow Jones Newswire. Ford is sticking with Geely, and is pouring cold water on rumors that Ford is entertaining other bids and bidders.

Sweden’s Dagens Industri had reported on Tuesday that Volvo’s CEO Stephen Odell had intimated that “Ford is open to talk with others. Those who say that the door is shut can go to Ford and talk with them whenever they like.” Looks like it’s wishful thinking. Sure, anybody can talk to Ford (if their call is taken.) But they will receive only one answer: “No.”

The good folks at Autocar report that an electric polar bear, made in China, will be unleashed on Europe this spring.

The Nanoq – meaning polar bear in Greenland – is a small and supposedly five seat plug-in. It will be manufactured as a joint venture between China’s Geely and Danish company Lynx. Geely provides the car, Lynx supplies the electrical components and a new lithium battery pack.

We also recognize there is a market (for the Nano) not only in developing countries, but possibly in the developed countries. For the United States we need a car which has a larger engine and we need additional crash test modifications and we are in the process of doing it.

Ratan Tata at today’s India Auto Expo [via Automotive News [sub]], suggesting that the world’s cheapest car could eventually be sold in the US. Fiat is already partnering with Tata to jointly sell the Nano in Latin American markets, so there’s a chance that the Indian city car could eventually show up at Chrysler dealerships.

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.

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 predicted various times on TTAC, Volvo has finally been sold to China. Ford said in a statement that it had agreed to all substantial commercial terms in a deal to sell Volvo to China’s Geely Holding Group, parent of Geely Auto, Reuters has on the wire.

“While some work still remains to be completed before signing, Ford and Geely anticipate that a definitive sale agreement will be signed in the first quarter of 2010,” Ford said. Final closing on the deal is expected for Q2 of 2010.

Unfazed by Swedish unions calling for an investigation into the Ford-Volvo-Geely deal, Geely is getting itself ready to swallow the big Swedish fish. The deal is already being feted as episode two of the takeover of international icons by the Chinese.

Responding to calls by Volvo’s unions for an investigation of Geely, Volvo management is calling the unions’ statements “almost xenophobic.” CEO Stephen Odell, and Personell Manager Björn Sällström of Volvo Cars have sent out letter to their empolyees, urging to modify their attitude towards their potential new employer, Geely. The letter is a response, not only to the unions’ public demand for a Geely investigation, but also the fact that these statements have sparked quite an anti-Chinese-business-methods campaign in readers’ letters to Swedish medias.

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.

Chinese Gasgoo is quoting Sweden’s Dagens Industri (DI) as saying that Geely will sign a contract later this week for the intellectual property rights of Ford’s Volvo Cars. Let’s hope everybody has their translations right.

We’ve always wondered what would happen with Volvo’s current Chinese joint venture with ChangAn once someone like Geely buys Volvo. Our Best & Brightest openly did “ wonder how this’ll effect Changan which already makes Volvo’s in their JV.” Well, now we know why ChangAn is so sanguine. “ Geely said today that it is interested in buying Volvo’s China operations, if Geely is successful in buying Volvo from Ford, Gasgoo reports.

The Wall Street Journal reports that the Crown group, which includes former Ford Executives Michael Dingman and Shamel Rushwin as well as former Volvo CEO Roger Holtback, are still in the hunt to buy Volvo Cars from Ford, or at least they like to think they are! Ford has been keeping these guys on the back burner behind Geely and told Crown to come back when they had money lined up. Guess what, Crown now says their “offer is fully funded and includes participation by Swedish investors … two adjustments aimed at making the offer more attractive to Ford in the sale of the Swedish operation.”

The car business and the news surrounding it have their seasonality (hence the SAAR.) As far as the news is concerned, we must have reached the “soak” part of the news cycle. It can only spin faster, or we should all take a vacation. Read on if you suffer from insomnia …