Geely signs deal with Ford on Volvo takeover
- Source: Global Times
- [20:46 March 28 2010]
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Glenn Magnusson, head of the managers' union at Gothenburg, Sweden-based Volvo, said in an interview that the Volvo union supported the acquisition. "We have received all the information that we were looking for," Magnusson said.
The Swedish carmaker, which has about 20,000 workers, was purchased by Ford in 1999 for 6.45 million dollars. Since late 2008, Ford had been attempting to sell Volo, due to its poor market performance. Geely was named as the preferred bidder for the Swedish subsidiary in October 2009.
Geely, which started to manufacture cars in 1998, is a major private automaker headquartered in southeast China's Zhejiang Province. Geely Holding Group is the parent company of Geely Automobile Holdings.
Besides Ford, some other Western auto giants are also seeking buyers in China. Beijing Automotive Industry Holdings has agreed to buy some powertrain technology from General Motors Co.'s Swedish Saab unit.
Jia Xingguang, an auto industry analyst, said earlier in an interview that the purchase was a big step out for Chinese auto industry going overseas. He is positive about Volvo's future, and gives Geely's Chairman a high praise, "Li has a good concern and Geely values Volvo's technologies of safety and environmental protection. And that's strategic."
Ma Guangyuan, a Chinese economist, was careful when he judged the purchase earlier. "Geely faces a big challenge. Signing the deal is only the first step for Geely. Integration is the key for Geely to operate the Swedish brand. Volvo was born in Sweden where people enjoy high welfare, and there are many differences between the two countries," he said.
