• Mar 23, 2010

Ford has been attempting to sell Volvo since 2008, and Zhejiang Geely Holding Group has been the lead bidder for almost as long. But for a multitude of reasons the deal just keeps getting drawn out. A recent report from Automotive News shows that the folks in China may be getting a little impatient with the long and likely arduous process. AN quotes a Wall Street Journal report claiming Geely Chairman Li Shufu says the Volvo deal has hit a snag, but the chairman reportedly was click to point out that his company was "ready to deal." Further, Shufu reportedly told a reporter that the negotiations are continuously changing, adding, "If the deal fails, the problem is not on our side. We have not violated any part of the agreement."

Earlier reports showed that a deal between Ford and Geely could become signed into reality by the end of March, with regulatory filings complete by the end of June. A Geely spokesperson reportedly told Reuters that the agreement is still on track for the end of March, and the company isn't specifying what issues may be popping up during negotiations.

[Source: Automotive News - Sub. Req.]



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  • 20 Comments
      • 4 Years Ago
      Reminds me of GM and its plans to sell Opel.
      • 4 Years Ago
      I just can't fathom why Ford is doing this.
      • 4 Years Ago
      My wife and I are ready to pull the trigger on a new XC60 but were waiting to see if the deal goes though. If it does then we look else where for our next car, there is no way on earth I would put my family in a car the Chinese have any thing to do with.

      If the Chinese get there hands on Volvo then I fear it the end for the company. Geely already made a statement to the effect of how they can help Volvo "lower costs". Which translates to using cheaper lower quality parts. Go to you tube and search the crash test video's for Chinese cars, they are death traps.
        rpvitiello
        • 4 Years Ago
        So why would that stop you from buying a car NOW. If anything that would help encourage ford to keep the brand if it is selling well. Right now volvo is losing money so that is a strike against it in fords eyes.

        Even if the Chinese buy the car, they will be using for tech for years, and it would take years to move production to china. The parts you get will not have any major changes for years after you buy the car.
        • 4 Years Ago
        uhg I hate typing on my iphone, let fix the grammar

        We keep our cars any where from 6-10 years. So let's say it takes 3-4 years for the parts to come from China that still gives me 5-7 years to have to buy Chinese car parts. And from my experience cars need the most work and most parts as they get older not when they are new.

        Plus there is resale value to take in to consideration even if the Chinese don't completely destroy Volvo, it's resale value will still drop like a rock.
        • 4 Years Ago
        We keep our cars any where from 6-10 years. So let's say it take 3-4 years for the parts to come from China that still gives me 5-7 years to have to buy Chinese car parts. And from my experience car need the most work and most parts as they get older not when they are new.

        Plus there is resale value to take in to consideration even if the Chinese don't completely destroy Volvo, it's resale value will still drop like a rock.
      • 4 Years Ago
      I sense a GM - Opel deja vu.

      Remember 2008. Markets suddenly collapsed, Ford started throwing everything that wasnt bolted down into the sea to prevent the ship from sinking, now finds that the water isnt as deep as expected.
      • 4 Years Ago
      I'm not wishing for Volvo to die by any means, but I would bet that if it did it would be far more profitable to Ford in the long run than any money it's currently worth. Geely will eventually enter the world market with cars that will directly compete with Ford for customers, and they'll use Volvo technology and knowhow to do it.

      Good for Geely and for the market, but not so great for Ford, or any other car company.
      • 4 Years Ago
      I hope it falls through so that someone in Europe gets another shot at picking up Volvo.
        • 4 Years Ago
        And I hope Ford will keep Volvo eventually.
        Given that Ford recently does what common sense begs for I wouldn't be surprised should the purchase "fail". :)

        There are people claiming that "rumors go that Ford has second thoughts about the purchase". I wonder what base for such claims there is. (Other than our wishful thinking. :)
        • 4 Years Ago
        My only real concern with Ford keeping Volvo is that they aren't really interested in running them any longer. They've expressed it in the press for years -- far longer than since agreeing to sell to Geely. If aren't interested in the brand and don't put the necessary resources into it, Volvo will simply flounder and fail.

        Hmmwv, I don't understand why Ford is keeping Mercury around either (although your analogy is off since Plymouth was a Chrysler brand) but there has to be a significant cost to winding them down or perceived upside to maintaining them as a badge engineered brand. The ONLY reason GM kept Buick over Pontiac was because of Buick's standing in China. Their sales volume certainly didn't compare to Pontiac's in the US. There's an untold story there somewhere. Maybe Ford is planning a wind down...or a relaunch? Only time will tell.
        • 4 Years Ago
        I would suggest dump Mercury and keep Volvo. I mean, come on, Mercury to Ford is just like Plymouth to GM.
      • 4 Years Ago
      The Chineses want technologies transfers; not just selling them a brand, they want the team, research capability, and the next generation powertrains.
        • 4 Years Ago
        please fail please fail please fail please fail!
      • 4 Years Ago
      It would be very nice to hear Ford say that their financials are strong enough now that they are actually KEEPING Volvo instead of selling them to the Chinese.

      Come one Ford, GM did the long-term smart thing and kept Opel... you need to do the same with Volvo.
        • 4 Years Ago
        Ummm...Jaime, Tata bought Jaguar back in 2008. Also, every Volvo model today shares a platform with an existing Ford. Where does Ford put its money? Into its own cars.

        The problems with Ford and the form Premium Auto Group members was that Ford didn't know how to manage their brands. They thought they knew what "British" cars looked like and what customers wanted and they were proved wrong. The X-type was a complete failure and even the S-type missed the mark. The XJ was truer to its original design than the 911 -- and it wasn't a 911. It's looked old for the past decade. At $70K+, it doesn't matter how good it is underneath. Also, much like GM (who never understood what a SAAB was), Ford never understood the appeal of a Volvo to its followers. Volvo didn't have to remain "boxy but good" but Ford never knew how to develop or market them as a brand.
        • 4 Years Ago
        @Compy386

        You are wrong as to the reason why Ford is selling Volvo. It ABSOLUTELY was (is) a financial decision. They needed to raise the money to keep going.
        • 4 Years Ago
        @Jamie

        I don't disagree at all. I think Ford should have kept Jaguar and shouldn't sell Volvo. You can bring Volvo down a slight notch and slot it above Ford and kept Jaguar your true luxury car. Volvo already shares a lot of Ford platforms as did Land Rover. Jaguar should have it's own platforms to challege some of the best of the best. However this isn't Ford's strategy. While I may not agree with Ford's strategy they've been doing well enough so maybe keeping FLM together is still the way to go.
        • 4 Years Ago
        I hope they're just trying to figure out a "diplomatic" way to do this.
      • 4 Years Ago
      Dear Dr Piech:
      Can u please save Volvo from the crap grip of Geely??? Whats one more in the harem?

      Dear members of ABBA:
      Instead of a box set,can u 4 throw some Krona out there and save a Swedish national icon...mama mia!
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