Volvo Unions Call For Geely Investigation

by Thor Johnsen

Published: December 11th, 2009

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

Thor Johnsen

More by Thor Johnsen

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

MaintenanceCosts E34 535i may be, for my money, the most desirable BMW ever built. (It's either it or the E34 M5.) Skeptical of these mods but they might be worth undoing.
Arthur Dailey What a load of cow patties from fat cat politicians, swilling at the trough of their rich backers. Business is all for `free markets` when it benefits them. But are very quick to hold their hands out for government tax credits, tax breaks or government contracts. And business executives are unwilling to limit their power over their workers. Business executives are trained to `divide and conquer` by pitting workers against each other for raises or promotions. As for the fat cat politicians what about legislating a living wage, so workers don't have to worry about holding down multiple jobs or begging for raises? And what about actually criminally charging those who hire people who are not legally illegible to work? Remember that it is business interests who regularly lobby for greater immigration. If you are a good and fair employer, your workers will never feel the need to speak to a union. And if you are not a good employer, then hopefully 'you get the union that you deserve'.
28-Cars-Later Finally, something possibly maybe worth buying.
EBFlex The simple fact is very small and cheap ICE vehicles have a range thats longer than all EVs. That is the bar that needs met. And EVs cannot meet that.Of course range matters. But that's one element of many that make EVs completely ineffective at replacing ICE vehicles.
Wolfwagen I like the exterior mods short of the satellite dish. Put a normal interior in it and they could have sold it as some sci-fi movie trim