Wednesday 23rd December 2009

Ford Sells Volvo To Geely

Deal set to be signed by early 2010

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Ford has confirmed that it is to sell Volvo to Chinese Car maker Geely.

The deal is expected to be finalised by early next year, and is said to be worth around £1.25bn.

"While some work still remains to be completed before signing - including final documentation, financing and government approvals," said Ford in a statement. "Ford and Geely anticipate that a definitive sale agreement will be signed in the first quarter of 2010, with closing of the sale likely to occur in the second quarter 2010, subject to appropriate regulatory approvals."

Once the deal is signed, Ford is expected to retain no stake in Volvo.

[BenHodgson]

Is that Geely of nearly-sued-by-Rolls-Royce fame??

Edited by BenHodgson on Wednesday 23 December 13:40

[Skyedriver]

Oh FFS no!

(and in Victor Meldrew mode) "I just don't believe it"

A "prestige" marque like Volvo now in the hands of the chinese version of the Chop Shop crew.....

[clarencegi77]

ok. some stereotyping here..
but the way i see it, this could be either brilliant for safety standards for the chinese manufacturers, well, ripping off technology from volvo into other geely's etc..
or it might also work completely the other way round..

[Ed.]

second option if last few years is anything to go by..

[toppstuff]

Not necessarily a bad thing.

China and India are the future.

Jaguar Land Rover are doing OK with TATA.

[anonymous-user]

Love to see how this affects the new Nobel. The Chinese are not known for sharing...

[sharky67]

If it wasnt for the chinese .. There will be no Volvo. Someone taking it on is better then no one right !!

[keith2.2]

sharky67 said:

If it wasnt for the chinese .. There will be no Volvo. Someone taking it on is better then no one right !!

I suspect that remains to be seen..

[Ed.]

toppstuff said:

Not necessarily a bad thing.

China and India are the future.

Jaguar Land Rover are doing OK with TATA.

India doesn't have a history of copying a whole manufacturing process to sell a similar competing product with many of the real qualities removed for cost cutting.

[Timberwolf]

As far as I can see, two major obstacles that have faced Chinese brands in Europe are lacklustre safety technology, and a shortage of decent engines compliant with recent Euro emissions standards - particularly diesels.

That makes this a potentially very interesting acquisition.

(Although a lot of the proprietary Volvo safety kit is expensive to fit with little benefit to NCAP scores, crash test videos of Chinese domestic market vehicles would suggest there are more than a few tips and tricks about chassis design and passenger safety cells they could pick up.)

[bencollins]

Like Roewe, it is to be renamed Vovoh.

[drewcole81]

So will Ford still be aloud to use the engines in the Focus ST and RS?

[PhilipAlfa]

What a week for the Swedish Motor Industry! A real shame for both Saab and Volvo

[A Scotsman]

PhilipAlfa said:

What a week for the Swedish Motor Industry! A real shame for both Saab and Volvo

The real shame was flogging these companies to GM and Ford in the first place but selling Volvo to the Chinese is industrial lunacy on a grand scale.

Edited by A Scotsman on Wednesday 23 December 16:24

[Andeh]

A Scotsman said:

PhilipAlfa said:

What a week for the Swedish Motor Industry! A real shame for both Saab and Volvo

The real shame was flogging these companies to GM and Ford in the first place!

Absolutely. Although i'd rather Volvo went the way of SAAB if the alternative is bloody awful re-hashed Chinese crap with Volvo badges.

[loveice]

clarencegi77 said:

... well, ripping off technology from volvo into other geely's etc...

How can you call it 'ripping off' when Geely owns Volvo by then. Is it just because Geely is a Chinese company. Therefore, 'ripping off' are the only two words you can think of?

[muffinmenace]

I'd say Geely have no interest in running an expensive company in a western country, whats the point when they have a billion customers on thier doorstep? In 5 years Volvo will be at best rehashes of the same stuff but worse, like MG.

[dandarez]

The SAAB episode is not over yet, Spyker are still trying to seal a deal.

As for the Chinese, you ridicule but what's the betting half your home and possessions are via them? Yes?

[MadmanO/T People]

Here's the e-mail I sent to Alan Mulally through Ford's website concerning the sale of Volvo to Geely. I encourage all of you to contact Ford and express your displeasure at them for allowing this to happen.

https://secure.ford.com/footer/contact-ford/contac...



A message for Alan Mulally.

Alan,

I have owned three Volvos and two Fords and I am writing to express my anger at your company's decision to sell Volvo to a Chinese comapny, Geely.

If you sell Volvo to the Chinese, I will never, never, NEVER buy another Volvo ever again. In addition, I will NEVER buy another Ford, either!

I can understand and appreciate the reasons why you might consider selling Volvo. (although, given Ford's recent return to profitability, I don't see why you have to sell Volvo at this time?) But, knowing how the Chinese operate, I see nothing good coming from the sale of Volvo to a company that is simply an extension of a brutal, totalitarian Communist regime.

Rest assured, if this sale goes through, neither I or anyone in my extended family will ever buy another Ford product ever again! Also, I will encourage all my friends, relatives and business associates to avoid Ford products in the future.

• ************************************************************************

I know it won't do any good, but I wanted to vent my anger at Ford for letting Volvo fall into the hands of the Chinese. Damn you, FORD!


Madman of the People

[loveice]

fatbutt said:

Love to see how this affects the new Nobel. The Chinese are not known for sharing...

Why and what makes you think THE CHINESE are ‘not known for sharing’. Tell you what, THE CHINESE are known to seat around a round table to eat dinner by SHARING the dishes in the middle of the table with each other. THE WESTNERS are known to seat around a long table and eat with their own plate of food...

Just because China as a country is governed by a single political party called 'communist party' (well, anyone knows anything about China would know there’s nothing communist about that government/party), which in the west is considered as total evil. But it does NOT mean THE CHINESE deserve all the comments above!!!