Geely to own 100% of Volvo
- Source: Global Times
- [15:20 February 01 2010]
- Comments
China's Geely Holding Group will buy 100 percent stakes in Volvo, including the ownership of Volvo's safety and environment protection technologies, and related technologies of Volvo's future derived models, a source close to the deal told China Business News (CBS).
The media reported that Geely would finish the deal with Ford before May with a price between $1.5 billion to $2 billion, and the Chinese automaker will build a plant in Beijing with an annual production capacity of 300,000 units for production of Volvo models, but Geely hasn't confirmed the news.
According to CBS, Geely will have Volvo's manufacture automobile factory, spare parts and components plants, R & D center, warehouse, production equipments, test facility, molds and industrial equipment, stock and other related physical assets, and a significant number of intangible assets which are listed below:
2,450 trademarks of Volvo's own intellectual property rights, patents and registered trademark;
1,500 technical monopolies of engine, platform and molds which Ford Motor transferred without compensation and some related rights;
200 design patents;
45 engine technologies which Ford Motor permitted without compensation;
20 safety technologies;
230 hybrid technology patents with Ford's limited license;
Other technologies which Volvo needs to complete production and for future development.
Geely has strengthened the communication with the Swedish brand's labor union to make sure the purchase goes well. Last Thursday, managers of the union came to observe the production, facilities, fabrication technology of Geely's plants and Geely's labor union.
Geely plans to run Ford Motor's Volvo unit as a separate entity and keep the subsidiary's main production base or development operations in Europe in the near future, Geely's Vice-President for International Operations Shen Hui said.
A source close to the National Development and Reform Committee (DNRC) said that the Chinese automaker is financially ready for the purchase.
Agencies and Shi Jierui contributed to this story
