[slammer111]

From now on, Volvo is now no longer a Swedish/American automaker but a Chinese one. How times have changed..

http://news.bbc.co.uk/2/hi/business/8428066.stm

Ford agrees Volvo sale to Geely

Volvo has been for sale for months

Ford has agreed the terms of the sale of its Swedish business, Volvo Cars, to China's Geely.

In a statement Ford said "while some work still remains to be completed...[they] anticipate a definitive sale agreement in the first quarter".

Ford put Volvo up for sale a year ago to help pay off its debt and make its business more focused.

Geely was named preferred bidder in November. If completed, it will be the largest purchase by a Chinese car firm.

Ford said that while the "substantive commercial terms" had been settled, financing still needed to be completed and government approval was also necessary.

It is thought that this update on the sale will help Geely secure the financial backing it needs.

No details were given of how much the deal is worth, but it is widely rumoured that Geely will pay Ford $2bn (£1.2bn; 1.4bn euros), less than a third of the $6.45bn Ford paid for Volvo in 1999.

Ford said it expects to continue co-operating with Volvo Cars, but did not intend to retain a shareholding in the business after the sale.

Benefits for all

Industry observers say the sale is good news for Volvo.

"In theory, the Chinese market could be an opportunity for Volvo," Nomura's auto specialist Michael Tyndall said.

"It's a well-known brand, has a good heritage and a range of products that should appeal to the Chinese consumer."

Equally, the deal should help Geely get into the Western market.

It is thought that the main sticking point in the talks between Ford and Geely had been disagreement about how to deal with intellectual property rights - setting the parameters of Geely's use of Volvo's technology, such as its famous safety equipment, and the extent and cost of using any technology needed from Ford's research.

Moving to China

Professor David Bailey from the Coventry Business School said that he expects much of the Volvo production to be moved to China, which recently overtook the US to become the world's largest market for cars.

"I would expect development and research to remain in Sweden, and maybe some production, but the big scale production will probably come from China," he said.

"In the long run the question is whether they can continue to develop Volvo's safety profile and advanced engineering technology" he added.

Geely said that Volvo would continue to lead the trend of world auto technology in safety and environmental protection.

"It will quickly increase its unique competitive status in the Chinese market," the firm added.

VOLVO
First Volvo made in 1927
Bought by Ford in 1999
Employs 20,000 worldwide
In 2008 sales fell 18.3% to 374,297

GEELY
Founded in 1986
Started as refrigerator parts supplier
Employs 12,000
Production capacity of 300,000 cars a year

[StylinRed]

GEELY?!!

$2 billion rumored sale price??!! What a STEAL!!


Now... will Volvo up GEELY's quality to at least a standard level or will Geely drag Volvo down to sub-standard :/

[CRS]

GEELY?!!

$2 billion rumored sale price??!! What a STEAL!!


Now... will Volvo up GEELY's quality to at least a standard level or will Geely drag Volvo down to sub-standard :/

Hoping for the former but most likely the latter.

[shenmecar]

GG

[q0192837465]

lol, I'm sure Geely will benefit from Volvo technologies. Old schooler may still "presume" Volvos are the safest car in the wrold

[bcedhk]

GEE GEEE GEEE ly

[Rich Sandor]

GEELY?!!

$2 billion rumored sale price??!! What a STEAL!!


Now... will Volvo up GEELY's quality to at least a standard level or will Geely drag Volvo down to sub-standard :/

considering ford paid 6.5 bill, yea, 2 bill is a steal.

however, i don't know what's left at volvo's in house development offices that ford hasn't already pilfered for itself. (both in patents and personnel)

it might not be a good deal if there's nothing left of value at volvo..

[Gt-R R34]

will geely now survive a crash now?

Smeone post those videos up with the build job of geely.

[hirevtuner]

so what do you get with a Geely and a Volvo?







A: an icebox

[J____]

fuk i knew i shoulda bougt into geely

[Marco911]

Big mistake for Ford. Geely just got all of the IP to build cars that can pass crash tests in N.America/Europe thus allowing them entry into this market. Good luck competing with a Chinese automaker, Ford!

[slammer111]

^ Nothing wrong with a little competition if you ask me. Maybe Ford was desperate to unload a money-losing division, but in any case I don't think Geely will be a threat for at least a decade. ;) And don't forget the millions of American rednecks who will still buy domestics (especially pickup trucks) only.

Chinese automakers have a HUGE uphill battle ahead of them. Think of them now as crappier versions of Kia and Hyundai in the 80s. :lol

[Mugen EvOlutioN]

time to stop buying

[skyxx]

This is a good move for Geely. Volvo has a lot of patents to many safety features. This should help, if not boost Geely's image in the near future. I wouldn't be surprised if Geely made a fantastic car within a decade.

[!LittleDragon]

It took Japanese cars about 40 years to get to where they are today. I expect the Chinese to do the same in at least half the time. In the late 60's and 70's, Japanese cars were considered junk and people thought they wouldn't catch on. It wasn't until the fuel crisis that people gave them a chance.

[skyxx]

^ It's getting faster and faster. I would assume within a decade.

[Timpo]

It took Japanese cars about 40 years to get to where they are today. I expect the Chinese to do the same in at least half the time. In the late 60's and 70's, Japanese cars were considered junk and people thought they wouldn't catch on. It wasn't until the fuel crisis that people gave them a chance.

I don't know about that...as far as I know, none of Chinese car manufactures participate in car races.
F1, LeMans 24, Daytona, CART, NASCAR, WRC, nothing..

I wonder if they truly have passion with cars or just interested in making money.

[hk20000]

Last I heard all Japanese car makers are starting to pull out of international auto racing.

Auto racing doesn't make any money or create positive image in today's society where tree huggers set the rules.

[JSALES]

oh no..

[Rich Sandor]

Big mistake for Ford. Geely just got all of the IP to build cars that can pass crash tests in N.America/Europe thus allowing them entry into this market. Good luck competing with a Chinese automaker, Ford!

there is more to it than just passing crash tests.

also, we have no idea what the terms of the agreement are, and what's actually left of volvo beyond the physical factories and labourers. Who know what patents and technologies remain with Volvo for Geely to use.. and how dated they may be.

[Volvo-brickster]

Will a Volvo still be considered a safe car?

[Hondaracer]

Big mistake for Ford. Geely just got all of the IP to build cars that can pass crash tests in N.America/Europe thus allowing them entry into this market. Good luck competing with a Chinese automaker, Ford!

yea, these chinese companies who aquire n/a automakers are getting a HUGE boost, like you said you buy them and you have the technology/know how to make better cars automatically

[notching]

lol i go tell my friend about this
he owns 2 volvos

[notching]

first it was Hummer, now Volvo, what's next?

[Vspeed]

GM joins China, now China buys Volvo? Now all they need is alberta's oil sands and China will rule the world...HaHaHaHa!!

[PiuYi]

fuck i hate the names for all these chinese car brands
GEELY
BYD??



500 posts!

[slammer111]

^ BYD = Build Your Dreams. I'm not kidding. :lol

[tiger_handheld]

another MADE IN CHINA - great ..... will this car be safe to sit on or will it have to be recalled cuz there is something wrong with teh fabric / cabin ?

[!Aznboi128]

+Kardboard+ will not be pleased

[rcoccultwar]

The mountain of legitimate admin/paperwork accumulated over decades by Volvo will be a good foundation for Geely to build on. Can't compete against that can you?

[The_AK]

I already don't feel safe.
Posted via RS Mobile (http://www.revscene.net/forums/announcement.php?a=228)

[GabAlmighty]

Fail. Fuck. Cock. Bitch. Retard. Fag. Shit. Bastard. Fagget. Balls. Hate. This. So. Much.

[skyxx]

+Kardboard+ will not be pleased

Why not, they're bringing Volvo to his "Motherland". He will be pleased! ;)

[+Kardboard+]

I have two Chinese cars in the driveway.

PRAISE THE UNCLELAND.

[TRD Rs200]

oh no GG

[GabAlmighty]

Maybe my OEM parts will be cheaper now? haha

[+Kardboard+]

There will now be a 2012 Volvo 240........................which is actually just the 1982 Volvo 240 built again with hammer and sickle.

EDIT: More news:

As CCT has been predicting all along, Geely is planning to keep Volvo as an independent business which they will fill with cash to keep it going, although it is likely that Geely will be sending its engineers over to Sweden for an intensive study course in car engineering:
From Reuters:
China’s Geely would barely lay a finger on Ford Motor Co’s Volvo if it succeeds in acquiring the Swedish luxury car brand, the firm’s top executive was quoted by state media as saying on Friday.


Volvo’s current production, research and development facilities, union agreements and dealer networks will all be left intact, said Li Shufu, the founder and chairman of Zhejiang Geely Holding Group, the parent of Geely Auto (0175.HK).
“If the deal succeeds, nothing will change for Volvo, except the boss turns to Li Shufu,” Li told the official Xinhua news agency. “Volvo and Geely will be two independently-managed brands.”


Ford Motor Co said on Wednesday it was nearing an agreement to sell its Volvo unit to Geely, China’s largest private automaker, in a deal that underscores China’s arrival as a major force in the global auto industry.


The value of the deal, which Ford said it expects to sign in the first quarter and close in the second quarter of 2010, has been estimated at $1.8 billion — far short of the $6.45 billion Ford paid for Volvo in 1999. [ID:nLDE5BM0VB]
Li, 46, said that it had been “more complicated” to negotatiate how to handle intellectual property rights than the deal’s price.


He said the Volvo purchase would help Geely develop new energy vehicles, and that Geely would help Volvo reduce production costs and expand in the Chinese market.


“The new energy-powered vehicle will be the future of the world’s auto industry,” Li said.


“But based on current investment in research and development, China will be left far behind the pace of developed countries,” he said in the English-language article.


China overtook the United States this year as the world’s largest auto market, as sales soared after Beijing rolled out a series of incentives designed to stimulate consumer spending at the height of the global downturn.
However, there is still a significant technology gap between domestic Chinese automakers and their global rivals, which has led Chinese firms to look overseas for acquisitions of technology and designs as the global auto industry restructures.
http://www.chinacartimes.com/2009/12/26/geely-to-keep-volvo-as-a-stand-alone-business/

[rcoccultwar]

I don't feel safer in any way. Im more than happy with car technology and applications made and designed in the 90's.

[C5_Ryder]

A Chinese company will buy GM one day mark my words.

[TRD Rs200]

oh shit balls!

[+Kardboard+]

Volvo/Geely Deal Exposed
http://www.chinacartimes.com/2010/01/11/volvo-geely-deal-exposed/Since early 2009 we have constantly hear rumours that Geely are planning to take over Volvo from Ford, eventually in late 2009 the deal was announced; Geely would become Volvo’s new master. A final price hasn’t been announced, but it is expected to be somewhere in the range from 1.5 billion to 2 billion RMB, considerably less than the 6 billion USD that Ford originally paid for Volvo.


The wording of the Volvo-Geely deal has yet to be finally announced, but some insider information that was leaked to the Chinese internet earlier today claims that:


Geely gets 9 products – S40, S60, S80, C70, C30, XC90, XC60, V50, V70
Three platforms – P1, P2, P24. The P1 platform is especially for compact cars, whilst the P2 platform is for larger sized cars
A worldwide dealership network of 2000 dealers
Access to Volvo supply chain, which will guarantee quality and delivery of products
All Volvo branding

The shopping list is fantastic for Geely, and will raise it from being a backwater car maker to an international player overnight. Geely are apparently hoping for world Volvo sales to hit 2 million units per year worldwide in the next 4 to 5 years, but in the meantime they are apparently aiming for sales of 1 million globally. Currently global sales of Volvo cars are at around 400,000 units, whilst China only accounts for a mere 13,000 cars. Geely are planning to give Volvo their biggest lease of life here in China by giving Volvo some more Chinese ‘design elements’ to make it more popular with local tastes, which doesn’t just mean they’ll be stretching yet more wheelbases to appeal to the Audi A4L crowd.


Financially speaking, Geely are apparently aiming to make a profit from Volvo within a year of ownership, and before 2015 they are aiming to get their investment in Volvo back.

[impactY]

All hail the chinese