Geely becomes Volvo’s new master
Published June 17, 2009
Geely Automobile | CCTJune 17, 20096:23 pm
According to auto.sohu.com, Ford and Geely autos have already struck an agreement to sell Volvo to the privately owned Chinese automaker. Auto.sohu.com says that Vovlo will be relocating a production line to Dongguan city in Guangdong where the first Volvo under Geely stewardship will be made, the first model to be made by a Geely owned Vovl will be the Volvo XC90 SUV.
Details are still sketchy, but it appears that an agreement has to be reached about the details of the purchase, which will also include a technology transfer to Geely. Geely also needs to make clear its intentions for the Volvo brand once they take ownership.
Geely have apparently received the support of the Dongying local goverment to bring Volvo production to the area, furthermore Geely have already applied to the local government for land, and a loan to build a new production facility in the area.
On top of the buying price, Geely are expected to invest a further 10 billion USD into Volvo, to build its brand and to further the brand within China and outside. Out of the Chinese car manufacturers, BAW, Chery, Changan, and Geely all had interest in buying Volvo, but it seems that Geely have come out on top this time.
It is still unknown what will happen to the Changan-Volvo joint venture once Geely officially takes over the Volvo reigns later this year.
- Tweet This
- Share on Facebook
- Digg This
- Save to delicious
- Stumble it
- RSS Feed
- Christine says:June 19, 2009 at 1:15 am
so this is just rumour ? lol whats the point of buying anyway ? why not grow organically ? like what Toyota and Honda did. Geely lol the name is funny, Geely Volvo
Tata has a 100 year history of excellence.
sorry I cant take this seriously, from what I heard Tata was forced to withdraw from the Caribbean regions due to very bad sales and quality problems, it is present in South Africa but it is low profile and have the same problem, in the recent South Africa auto report magazine, they did a comparison between the Chinese Great Wall Motors pickup and a Tata and Mahindra pickups, the Chinese Great Wall won hands down, both Tata and Mahindra got very bad reviews. The Chinese cars have low reputation and they have higher reviews than Tata and Mahindra.
- Ed says:June 19, 2009 at 5:14 am
Charlie is such an idiot, shut the hell up and stop spreading your shit. Tata is shit, Chinese cars are wayyyy better.
- ultra says:June 19, 2009 at 6:04 am
after reading this blog entry, I invested a lot of money in Geely stock. I hope you are saying the truth and its no stupid rumor.
- twinkle says:June 19, 2009 at 7:57 am
Tata better than Geely??I dont think soHeck Tata vehicles sucked badly even if its got Merc technology in it.
Hope that this buyout will benefit both parties..
- mark says:June 19, 2009 at 9:14 am
For the record I think Jaguar will survive. They are now putting together a great range of cars and finally showing that British doesnt necessarily mean old fashioned. So long as financing can keep up for the next 5 years I think they will have a strong future.
- ultra says:July 1, 2009 at 3:10 am
Any news about the purchase of Volvo?
Ford seems to be denying all rumors.
Leave a Reply
Click here to cancel reply.
Mail (will not be published) (required)
Howdy! Get all replies to this thread sent to you via email, just click the box!