Thread: Whats Volvo in Chinese?

BREAKING: Ford says it has come to terms with Geely on Volvo sale

by Chris Shunk (RSS feed) on Dec 23rd 2009 at 9:33AM


Ford Motor Company has just announced that all major terms relating to the sale of Volvo have been settled between Ford and Zhejiang Geely Holding Group Company Limited. That doesn't mean that all the Ts have been crossed on the deal, but it does indicate that Geely has met all of Ford's terms for the sale to be complete. Ford has issued a press release stating that a definitive sale agreement will be signed in the first quarter of 2010, while the final sale won't take place until Q2.

Earlier in the month, former Volvo executives sent a letter to Ford Chairman Bill Ford, Jr. voicing their concern that Geely doesn't have the necessary resources to support Volvo. Not so, according to Ford's press release. The Blue Oval states "the prospective sale would ensure Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise." And even though Ford will likely soon be handing over the keys to Volvo to a Chinese automaker, the company still intends to work closely with the Swedish automaker post-sale. That makes sense considering the fact that all Volvo products share platforms and components with Ford-branded cars and crossovers.

The sale will also go far in achieving Ford's goal of divesting itself of its non-core assets so the Dearborn, MI-based automaker can concentrate on matters closer to the Blue Oval's heart. Follow the jump to study Ford's brief press release. Thanks to everyone for the tips!

[Source: Ford]

Originally Posted by loanrangie

The chinese are welcome to Volvo, bloody ugly pieces of crap. The sole of Volvo died (like Saab ) when the yanks took over and homogenized it.

You are missing the point though. One of the few areas the Chinese have not been able to control is car supply to the world. Their products are rubbish, and their safety is even worse. Thus, they haven't been able to gain traction in any developed world market.

How a car drives is important to some people, but for many they don't know and if offered a chinese product at a given price, they would take it. Same for build quality - most people wouldn't now.

However safety is one thing they just can't crack. Their cars are **really** bad in this regard and they don't understand what all the fuss is about (there are heaps of people - whats the problem). However consumer crash testing shows them off publicly. People won't buy their cars because they will be mocked (Don't you love your wife, little Johnny...).

The difficult bit is that safety is real hard. It's a black art that the car manufacturers have been unwilling to share thus far with the Chinese. It's about engineering and attention to detail. By purchasing Volvo (and SAAB ) the US Government (GM) have given the safety FAQ and howto to the Chinese government. This technology will be distributed to all their car manufacturers.

I reckon within 5-10 years the Chinese will be delivering cars to the shores of developed nations that will do acceptably well in crash tests. So, while the Yanks think they have divested themselves of non-core brands - they have in fact set themselves up for an another formidable competitor in a few years time.

Clearly GM is purely in survival mode. They need every last drop of liquidity or they won't be around to see the new competitors.

I find it fascinating watching how the Chinese are winning the GFC.