• Nov 15, 2009
Should Geely succeed in its bid to purchase Volvo, the Chinese automaker does not plan to spend any time playing in its new Swedish sandbox. Ford moved about 380,000 Volvos around the world last year; Geely wants to sell 2.5 times that amount within five years. How so? By injecting "two or three bigger, more luxurious cars" into the lineup and working its home market of China, which Geely feels could be unlocked for 200,000 vehicles alone. Those units could be supplied by a Chinese factory capable of making 300,000 cars per year and would presumably be larger than the upcoming redesigned S60 (above).

Ford has designated Geely its preferred bidder for Volvo. However, in an echo of the tensions between General Motors and Magna's Russian bidding partner Sberbank, Geely will need to address Ford's intellectual property concerns among other issues to complete a sale. Volvo's technologies and reputation for safety are probably worth as much as the company's physical assets, so it's not surprising that Ford wants to negotiate the technology transfer. Assuming they can come to terms, closing the deal is expected to cost Geely $2 billion.



[Source: Automotive News, sub. req'd]


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  • 34 Comments
      • 5 Years Ago
      What, only $2billion for Volvo?!! That's ridiculously cheap!!! I thought ford wanted at least $6billion...
        • 5 Years Ago
        No, they spent 6billion. They want whatever they can to get some cash on hand to prevent going bankrupt should car sales dip now that c4c is done. Even if it isn't the best long term move. :(
      • 5 Years Ago
      Its to bad i like Volvo. I will not purchase a car built in a communist, totalitarian country. it is not a matter of engineering quality its more about human rights violation and not supporting an oppressive government.
        • 5 Years Ago
        half of these dudes are trolls, you can tell most of the time by the fact that they post solely to either defend a certain brand and to attack other certain brands, meanwhile adding nothing of value to discussion in between, or by the fact that they created an account just to make ignorant comments on certain posts.
      • 5 Years Ago
      China is currently no 2 car manufacturer behind Japan, i believe by 2012 it will be World's premier car builder.

      Japan:11.5 mill
      China:9.3 mill
      USA:8.7 mill
      Germany:6.0 mill
      Source http://en.wikipedia.org/wiki/Automotive_industry
        • 5 Years Ago
        premier has positive connotations, lets go with largest volume of production.
      • 5 Years Ago
      Why is Ford selling Volvo? And if so why now?

      Its the bad car market, Volvo has their best car coming out in the most mainstream car segment. Volvo's better days are ahead. Better to at least wait and get a better price. Or better yet form a JV with Geely keeping 50% of Volvo and gain MORE access for Ford in China in which they lag.

      Why sell?
        • 5 Years Ago
        I've been wondering that same thing myself. Jaguar? Range Rover? Aston? Perfectly understandable--all of these contributed more cachet than actual engineering expertise.

        Volvo, on the other hand, has a solid engineering reputation, and was contributing significant technology to the rest of the Ford lineup. Geely would be buying themselves a lot of respectability.
        • 5 Years Ago
        Apparently, Ford is more worse off financially than they led everyone to believe just because they didn't take govt money. I'm sure Ford would keep Volvo if they could but it's probably just not financially viable for them.
        • 5 Years Ago
        You got a good point, I personally don't have much faith in Geely, throwing out big words to attract media attention is pretty typical for them. Triple sales by introducing luxury vehicles?! Give me a break.
        • 5 Years Ago
        "Volvo, on the other hand, has a solid engineering reputation, and was contributing significant technology to the rest of the Ford lineup. Geely would be buying themselves a lot of respectability."
        Yes and now Ford has all that technology and can develop it further themselves without paying the bills to keep Volvo alive. For now at least Volvo is a financial drain more than anything else for Ford.
        • 5 Years Ago
        I'd like to see Ford keep Volvo. It's the closest thing they have to a luxury brand now that Jaguar is gone.
        • 5 Years Ago
        the4thheat: Thanks. I needed a good laugh. Do you honestly think Lincoln is a luxury brand? Name a single model that doesn't have a nearly identical and more affordable Ford counterpart. The closest thing to product differentiation they have is the MKT and that will be a sales bomb. Lincoln is to Ford as Chrysler is to Dodge.
      • 5 Years Ago
      Wow selling the most forward thinking safety minded car company to someone who will more then likely gut such qualities in the name of profitability. I doubt geely has such capacities to continue the quality.
        • 5 Years Ago
        i doubt ford cares. ford cares about keeping ford viable and profitable, not about continuing to spend money and resources on volvo for a lot less return.
        • 5 Years Ago
        "Wow selling the most forward thinking safety minded car company to someone who will more then likely gut such qualities in the name of profitability. I doubt geely has such capacities to continue the quality."

        I don't see what the point of paying $2 billion for Volvo only to "gut" their core competency is, as if Geely has some long standing grudge against them and has set out to destroy Volvo. It's funny to see how brainwashed people are, to think that any company would pay this amount for any company, for the sole purpose of running it into the ground.

        Obviously, Geely wants Vovlo's tech, and It'll be interesting to see what people will be saying when Volvo's safety tech becomes cheaper to produce due to mass production and therefore ends up reducing costs across the industry while maintaining standards, if Geely and Ford manage to complete the acquisition that is.
      • 5 Years Ago
      also beyond that i ind their complete disregard for intellectual property appalling.
      • 5 Years Ago
      Good looking Volvo in the photo. Too bad Volvo doesn't make a reasonably priced, and fuel efficient coupe, somewhere between the C30 and the C70. Perhaps a C40 or C60??? I want a cloth interior option on that also. I think the C30 could be a great vehicle if it were more fuel efficient. Volvo focused a bit too much on performance rather than ride quality and efficiency where the C30 could have really excelled. I particularly like the options where the buyer can truly customize the interior and exterior without the needless expense of larger packages which require an all or nothing approach.



        • 5 Years Ago
        This would actually be bigger than the C70, which is based on the S40/V50/C30. Maybe they should can the current C70 (or rename it C50) and make a new C70 based on the S60, just like the original.
        • 5 Years Ago
        I mean...it's 30mpg with 225horsepower. There isn't a lot of compromise being made there.

        I think what you really want is a Civic coupe?
      • 5 Years Ago
      I really don't want this to happen. If Volvo ends up chinese owned I probably won't ever be buying one. . .
        • 5 Years Ago
        I think your comment is quite racist as I can say the same thing for the ownership of Land Rover and Jaguar own by Indian. I could have said the same comment as you would that I would never buy a Jaguar because it is own by an Indian. Come on people, you give high ranking to this comment and you guys don't like that fact that the trend of powershift from the West to the Asian powerhouses is in the future for us.
        • 5 Years Ago
        Yes, my reason for not wanting to support chinese product is because I hate asian people.

        That was sarcasm btw.
      • 5 Years Ago
      Rolls-Royce considers legal action against £30,000 Chinese copycat
      Rolls-Royce is consulting lawyers after the Chinese launched a copycat car, including a winged mascot and huge radiator grill, for just £30,000.
      http://www.telegraph.co.uk/motoring/5205369/Rolls-Royce-considers-legal-action-against-30000-Chinese-copycat.html

      Geely, Chery and BYD Copycatting at the Shanghai Auto Show
      By CSC staff, Shanghai
      http://www.chinastakes.com/Article.aspx?id=1160


      REPORT: Chinese automaker SAIC accused of hybrid tech theft by SsangYong
      http://www.autoblogger.de/articles/autoblog-11903-report-chinese-automaker-saic-accused-of-hybrid-tech-theft-by-ssangyong/
      ----------------------------
      After chinese company get the technology they wanted. All volvo workers in sweden will layoffs.
      After chinese company get volvo technology, Chinese company kill US auto industry by cheap price volvo copies.

      intellectual property? China is a big country. Sweden goverment and Ford can NOT do anything against to China.
        • 5 Years Ago
        sure you aren't.
        • 5 Years Ago
        It's sad how low these ignorant South Korean nationalist will stoop. How hypocritical and pathetic considering South Korea is the original perpetrator of producing counterfeit goods.

        You don't ever see the Japanese, Germans, Americans or any other people from any other country for that matter stooping so low as these guys... it's just pathetic.
        • 5 Years Ago
        btw, i'm not a south korean.
      • 5 Years Ago
      I wish someone like BMW would buy Volvo.
        • 5 Years Ago
        And do what with it?

        lol
      • 5 Years Ago
      No Volvo enthusiast wants to see this happen
      • 5 Years Ago
      “Chinese company BOE got the technology they wanted. All we got was layoffs,” said Hwang Pil-sang, a Hydis worker."

      “We trusted their promise to help us into the vast Chinese market,” Mr. Yang said. “In the end, they kept none of their promises, and they got what they wanted: our technology.”

      http://www.nytimes.com/2009/02/24/world/asia/24seoul.html?pagewanted=1&_r=2&ref=asia
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