Chinese automaker Geely did indeed place a bid to buy Volvo in August, the company's CEO, Gui Shengyue, confirmed yesterday in an interview with the Financial Times. Geely is still thought to be the only serious bidder for Volvo.
Two sources close to the company estimate the size of the bid at just under $2 billion, which falls into the line with the $1.5 to 2 billion Ford is reportedly seeking. FT reports that Geely also wants to buy all of Volvo, which would seem to work well, since Ford wants to sell its Swedish subsidiary in one piece.
Financial Times (sub.req)
zoomzoomn says:
05:07 AM, 09/ 9/09
I guess that means the heavy truck division, too? That's kind of ashame. I don't know if that part of Volvo is profitable, but you sure see alot of their rigs on the highway.
moparbad says:
07:19 AM, 09/ 9/09
Ford purchased Volvo to the tune of 6.5 billion.
Is it better to sell Volvo now for 2 billion or less or wait two years until the automotive market and financial markets are more robust to obtain a better price for Volvo?
Nope, get rid of it.
brn says:
07:58 AM, 09/ 9/09
Does Ford own the heavy truck division?
walking_dead says:
08:43 AM, 09/ 9/09
what a way to destroy a brand, I will never own a Chinese Volvo
mirth says:
08:49 AM, 09/ 9/09
Ford does NOT own the heavy truck company. They bought the car side of the business only way back when.
stovt001 says:
09:15 AM, 09/ 9/09
"what a way to destroy a brand, I will never own a Chinese Volvo"
Same thoughts here. Volvo is one of the few good sources of wagons in the US market, and I don't want an SUV or CUV, but I want a Chinese vehicle even less. VW or Subaru look like my only options now, unless I want to pay bigger bucks for a Caddy, BMW, or Mercedes wagon. The CTS wagon is a looker...
brn says:
09:21 AM, 09/ 9/09
"what a way to destroy a brand, I will never own a Chinese Volvo"
Then things wouldn't change much. Nobody is buying Volvo right now.
cruiserhead1 says:
11:21 AM, 09/ 9/09
chinese automakers don't know how to build a real car. They are buying for the manufacturing expertise. 2 billion is cheap for the ability to become a world player.
I hope it doesn't happen. I don't want more crap Chinese product. If they follow their normal pattern, they will just gut Volvo and file bankruptcy, leave Volvo for dead.
walking_dead says:
12:04 PM, 09/ 9/09
chinese automakers don't know how to build a real car. They are buying for the manufacturing expertise. 2 billion is cheap for the ability to become a world player.
I hope it doesn't happen. I don't want more crap Chinese product. If they follow their normal pattern, they will just gut Volvo and file bankruptcy, leave Volvo for dead.
this is also about the brand, people may not buy a 10k Geely, but maybe will buy a 14k Volvo.
The American middle-class is decimated and ruined, China has 1 billion consumers all hungry for brand names
deric4eyes says:
12:25 PM, 09/ 9/09
agree with @walking_dead, Volvo sales may actually go up if this means they have more/better access to the Chinese market. However, I'd be wary about buying a Geely-owned Volvo as well. If the deal goes through, it would be very important to make sure the brand isn't tainted by the idea of cheapness. Question for Ford is, how important is having an extra $2bln cash if that means giving up a major contributor to your recent successes (and presumably still has contributions to make on the future)?
brn says:
01:52 PM, 09/ 9/09
deric4eyes, don't be so sure that Volvo is a major contributor to Ford's current success. Yes, you can argue that some of Ford's current products are on Volvo platforms. That doesn't mean Volvo created them, only that Ford used Volvo to launch platforms. The higher price and lower volume of Volvo, allowed them to do that. Ford can now use Lincoln for that purpose (they should have been doing it all along).
I've no problem with Ford dumping Volvo. However, it would be very sad to see it go to Geely.
estreka says:
05:18 PM, 09/ 9/09
The Chinese are coming to America eventually. This is probably Geely's best shot at that.
firstwagon says:
08:25 PM, 09/ 9/09
I would still buy a Jaguar XF even though Jag is now owned by Tata... so I guess I would buy a Chinese owned Volvo too (if I had any interest in buying a Volvo which I don't).
firstwagon says:
08:35 AM, 09/10/09
"chinese automakers don't know how to build a real car"
I used to work with people from all over the world and that's what they say about Americans and cars.
When I ask if they have driven one they say no or tell me a story about some 10 or 20 year old American car that was nothing but trouble.
The world is changing and the Chinese are changing faster then anyone. It should be interesting to see who "the big three" are 10 years from now.