China's Geely buys Volvo unit for USD 1.8 billion

[Communist]

China's Geely buys Volvo unit for USD 1.8 billion

STAFF WRITER 19:37 HRS IST

Gothenburg/Beijing, Mar 28 (PTI) China's Zhejiang Geely Holding Group today acquired US auto giant Ford Motor's ailing Swedish car unit Volvo for nearly USD 1.8 billion, allowing the Chinese company a major foothold in Europe.

The deal was inked by Geely Chairman Li Shufu and Ford's Chief Financial Officer Lewis Booth at the headquarters of Volvo Cars in Gothenburg, the second largest city of Sweden, the official Xinhua news agency reported.

The Swedish car-maker, which has about 20,000 workers, was purchased by Ford in 1999 for USD 6.45 million.

But Ford had been attempting to sell Volvo since late 2008, due to its poor market performance, the report said.

Ford also wanted to focus its resources on managing its core Ford, Lincoln and Mercury brands.

Geely was named as the preferred bidder for the Swedish subsidiary in October 2009.



fullstory

 

[Speeder 2]

China's Geely buys Volvo unit for USD 1.8 billion

,,,,

I wonder if Volvo car includes key engine technologies. I always thought Chinese domestic industries are weak at engine tech, car engines (imported? ), tank engines(imported), ship engines(imported), jet engines(imported). etc.... Hope volvo deal could help Chinese domestic engine research in real sense, not just a foothold in EU for carsales only

 

[Speeder 2]

Mods has to watch out for u as when they have banned u as speeder u have make a new id speeder 2. You are playing with the rules of this forum.

Proofs?

You are a troll, the same as your fellow countryman "tomar". As anyone can see, sabotaging the forum is your prople's only goal here without offering any susbstance and value.

Every time I log in Pakistan Defence Forum I see people like you trolling here using China Defence Forum as a convenient platform for blindly bashing China.



I hope that Pakistan Defence Forum (and its China Defecne Sub Forum), are not highjacked by Indian Mods, and losses all its credibility because of that.

 

[Communist]

Proofs?

You are a troll, the same as your fellow countryman "tomar". As anyone can see, sabotaging the forum is your prople's only goal here without offering any susbstance and value.

Every time I log in Pakistan Defence Forum I see people like you trolling here using China Defence Forum as a convenient platform for blindly bashing China.



I hope that Pakistan Defence Forum (and its China Defecne Sub Forum), are not highjacked by Indian Mods, and losses all its credibility because of that.

Well said. I promised someone I will find him. And I do what I say.

 

[AZADPAKISTAN2009]

Great news that China has purchased an icon car we may not like the design of volvo but it is still a brand name and it gives China a foothold in European system , and also saves jobs in europe good for every one

 

[prototype]

i think jaguar and land rover were also owned by ford,which is now in the hands of tata motors of india

now china's gelly added volvo to its pack

by this way i think with in a few yrs fords iconic brand aston martin will also end up in the hand of some asian major

 

[Communist]

China becomes world's leading car manufacturer with purchase of Volvo from Ford for £1.2billion

By ROB DAVIES
Last updated at 7:03 PM on 28th March 2010

China cemented its position as the world’s biggest car-producing nation yesterday as its largest private auto company bought Volvo from Ford in a deal worth £1.2billion.

The global recession has seen China overhaul the US and Germany at the top of the league of car-exporting countries, as manufacturing in Western countries was ravaged by economic turmoil.

Signed and sealed: Zhejiang Geely Chairman Li Shufu and Ford Executive Vice President Lewis Booth shake hands after finalising the deal in Gothenburg, Sweden, where Volvo will continue to be based

Yesterday’s sale of Volvo to Zhejiang Geely brings to an end an extensive programme of sales by Ford that has seen it dispose of some of the best-known luxury brands in the world.

The sale came just months after Ford also offloaded Aston Martin – made famous by the James Bond movies - to a UK consortium for £479million.

This latest disposal will allow Ford to focus on its core brands and build up cash reserves as it bids to emerge relatively unscathed from a recession which claimed some of its US rivals.

Chrysler, the owner of the Jeep and Dodge brands, went bust in 2009, while General Motors (GM) was forced to restructure after accepting a bailout from the US government.

GM only narrowly avoided having to sell its European operation Opel, branded as Vauxhall in the UK, after it pulled out of a sale at the 11th hour.

Global deal: The Swedish marque has now transferred from U.S. to Chinese ownership

The economic downturn saw China race past the United States to become the world’s top auto market last year, with sales surging 46 per cent to a record 13.6million units.

The country is also keen to expand into Western markets but has so far lacked the technology and brand recognition to do so.

But moves to snap up European car makers offer Chinese firms a potentially lucrative major market, as well as the opportunity to market trusted global brands in the domestic market.

Geely said Volvo’s head office, production facility and research centre would remain in Sweden, the brand’s original home.

But chief executive Li Shufu is already planning a factory in Beijing which will make 300,000 Volvo branded cars, or as many Volvos for China as are now made abroad for foreigners.

Yesterday’s deal comes after two years of talks over the unit, which was earmarked for sale in 2008 as it failed to turn a profit for Ford.
The sale process was all but resolved when Geely was named Ford’s preferred bidder in October last year.

China becomes world's leading car manufacturer with purchase of Volvo from Ford for £1.2billion | Mail Online

 

[prototype]

China becomes world's leading car manufacturer with purchase of Volvo from Ford for £1.2billion

By ROB DAVIES
Last updated at 7:03 PM on 28th March 2010

China cemented its position as the world’s biggest car-producing nation yesterday as its largest private auto company bought Volvo from Ford in a deal worth £1.2billion.

The global recession has seen China overhaul the US and Germany at the top of the league of car-exporting countries, as manufacturing in Western countries was ravaged by economic turmoil.

Signed and sealed: Zhejiang Geely Chairman Li Shufu and Ford Executive Vice President Lewis Booth shake hands after finalising the deal in Gothenburg, Sweden, where Volvo will continue to be based

Yesterday’s sale of Volvo to Zhejiang Geely brings to an end an extensive programme of sales by Ford that has seen it dispose of some of the best-known luxury brands in the world.

The sale came just months after Ford also offloaded Aston Martin – made famous by the James Bond movies - to a UK consortium for £479million.

This latest disposal will allow Ford to focus on its core brands and build up cash reserves as it bids to emerge relatively unscathed from a recession which claimed some of its US rivals.

Chrysler, the owner of the Jeep and Dodge brands, went bust in 2009, while General Motors (GM) was forced to restructure after accepting a bailout from the US government.

GM only narrowly avoided having to sell its European operation Opel, branded as Vauxhall in the UK, after it pulled out of a sale at the 11th hour.

Global deal: The Swedish marque has now transferred from U.S. to Chinese ownership

The economic downturn saw China race past the United States to become the world’s top auto market last year, with sales surging 46 per cent to a record 13.6million units.

The country is also keen to expand into Western markets but has so far lacked the technology and brand recognition to do so.

But moves to snap up European car makers offer Chinese firms a potentially lucrative major market, as well as the opportunity to market trusted global brands in the domestic market.

Geely said Volvo’s head office, production facility and research centre would remain in Sweden, the brand’s original home.

But chief executive Li Shufu is already planning a factory in Beijing which will make 300,000 Volvo branded cars, or as many Volvos for China as are now made abroad for foreigners.

Yesterday’s deal comes after two years of talks over the unit, which was earmarked for sale in 2008 as it failed to turn a profit for Ford.
The sale process was all but resolved when Geely was named Ford’s preferred bidder in October last year.

China becomes world's leading car manufacturer with purchase of Volvo from Ford for £1.2billion | Mail Online

how can china become no 1 manufacturer after volvo's purchase,as far as i know china was no 1 even before the sale(i am not sure)

some more confusions

is china the biggest car manufacturer in world
or is the biggest market(sales per yr) in the world
or is the biggest exporter(automobile)in the world
or all of these

and according to u if china become no 1 automobile maker in the world after purchase,how come since volvos plants r spread across the world(for example a volvo car produced in u.k cannot b taken into chinese manufacturing account even if it is ownwd by chinese),or is Gelly planning to move all manufacturing hub into china,or is that the manufacturing hubs were already 100% centered in china,then just like i said u were already the biggest manufacturer even before the acquisation