digitaldragon
New member
I saw something on the news about this.. anyone else heard?
http://www.cbc.ca/money/story/2010/03/29/china-volvo.html
http://www.cbc.ca/money/story/2010/03/29/china-volvo.html
Zhejiang Geely Holding Group has signed a binding deal to buy Ford Motor Co.'s Volvo Cars unit for US$1.8 billion US, representing a coup for the independent Chinese automaker, which is aiming to expand in Europe.
The purchase gives Geely a European luxury car brand with a reputation for safety and quality at a time when China, which last year surpassed the U.S. as the world's largest car market, is eager to improve its competitiveness by acquiring foreign automotive brands that might help it improve its technology and expand into overseas markets.
The price, which includes a $200-million note with the remainder to be paid out in cash, is far less than the $6.45 billion Ford paid for the Swedish automaker in 1999. The U.S. automaker has been trying to sell Volvo since late 2008 to focus its resources on managing its core Ford, Lincoln and Mercury brands.
Geely said it aims to keep Volvo's existing manufacturing facilities in Sweden and Belgium, but that it also will explore manufacturing opportunities in China. Volvo Cars will remain separate from Geely's other operations, with its own Sweden-based management team and a new board of directors, the company said.
"China, the largest car market in the world, will become Volvo's second home market. Volvo will be uniquely positioned as a world-leading premium brand, tapping into the opportunities in the fast-growing China market," Li said.
As Western automakers unload unprofitable assets, they are finding keen buyers in Asia.
In 2008, Ford sold its Jaguar and Land Rover brands to India's Tata Motors Ltd. for $1.7 billion, a third of what it paid for them