Monday, March 29, 2010

Geely (chinese automaker) buys Luxury brand VOLVO for 1.8 Billion

Ford Motor Company announced it has agreed to sell its Volvo unit to Chinas Zhejiang Geely Holding Group for $1.8 billion.

Ford said Geely will pay $200 million with a note, and the rest in cash.

While For will continue to supply Volvo cars with powertrains, stampings and other vehicle components, and will provide engineering and information technology support to Volvo for a transition period, it will not retain any ownership in the company.

Ford expects the deal to close in the third quarter.

Wednesday, July 08, 2009

Will Chinese car maker Geely Auto buy Volvo ?

Geely Holding Group on Thursday denied rumors that it was planning to purchase Ford Motor Co.'s Volvo unit, according to a report on Sohu.com.

Zhang Jiagan, assistant to Geely's president, said the company recently sent a team to investigate the auto market in Syria, not Sweden, according to the report. But he did not disclose any information about whether Geely was interested in buying Volvo from Ford Motor Co. of Detroit, which bought the Swedish automaker in 1999 for 6.45 billion.

Media reports have speculated that Geely officials had visited Volvo's headquarters in Gothenburg, Sweden and planned to go there again this week to negotiate a purchase of Volvo.

Ford indicated its willingness to sell Volvo last December to focus on its core brands and cut costs amid a sharp drop in car sales.

John Gardiner, a Ford spokesman, has refused to discuss any information regarding a sale of Volvo in recent interviews. But he has said Ford has not yet made any final decisions about selling the automaker.

Geely has long been considered to be interested in taking over Volvo. Hong Kong-listed Geely Auto Ltd., the holding company's auto subsidiary, previously announced that it did not have plans to buy Volvo. But the announcement did not specify that the parent company would not consider purchasing the automaker.
Source:chinadaily.com.cn

Geely (chinese carmaker) raises shareholding in Geely Automotive to over 30 Percent

Geely Group Ltd recently raised its shareholding in Geely Automobile Holidngs<0175> to 31.83% from the previous 31.77%, according to the bourse operator Hong Kong Exchanges and Clearing (HKEx)
Information from HKEx showed that Geely Group bought 4.25 million H-shares of Geely Auto on Jul. 3 for HK$5.9 million. The average share price of the transaction was HK$1.38 apiece.

H-shares of Geely Auto rose 2.17% to end at HK$1.41 on Tuesday.


Source: chinaknowledge.com

Seven Million Cars Installed Navigation Devices in China during 2008

Seven million cars installed navigation devices in China during 2008, despite only a 4.6% penetration of the total potential market for all cars. Compared to Japan, Europe and U.S.A, Chinese car navigation market was still in its early stage. In 2008, the market penetration rate of car navigation in china was only 4.56%, far lower than the 60% of Japan,
and 20%-30% of both Europe and U.S.A.

In 2008, The car ownership reached at 149 million in China, among which 40 million are private cars, and about 6.8 million cars have installed navigation devices. Also in 2008, Chinese car navigation market sharply increased, a total of 3.1 million navigation devices were sold during the year, more than doubled of 2007.

Chinese car boom could last a few years

HONG KONG (Reuters) - China is at the start of another boom in car sales that is being propelled by rising incomes in third-tier cities and could continue for a few years, JP Morgan said on Wednesday.

A 21 percent surge in car sales this year has caught Chinese car makers, which had curbed production on expectations the country's sharp economic slowdown late last year would depress demand for big-ticket items, off guard.

Frank Gong, JP Morgan managing director and China economist, attributes the boom to a surge in the number of people in third-tier cities like Xian and Chengdu who now earn more than $5,000-$6,000, the minimum needed to buy and maintain a car.

"The strongest growth in car sales now is in third-tier cities and low-end cars," Gong told a press briefing in Hong Kong. "We believe this is the start of a third auto boom in China."

Sunday, February 08, 2009

China to subsidize use of energy-efficient vehicles

Shanghai, February 6 (Gasgoo.com) China will subsidize the use of energy-efficient and new-energy vehicles in 13 cities, the Ministry of Finance has announced. The government subsidy is intended to encourage the manufacture and use of "greener" energy-efficient vehicles, xinhuanet.com reported today.

According to a recent joint statement of the Ministry of Finance and the Ministry of Science and Technology, the central government will offer a one-off subsidy for buying hybrid, electric and fuel-cell vehicles. The subsidy will vary with the difference between the prices of new-energy vehicles and those powered by traditional fuel.

Chery's Jan sales up 36% y/y to 35,000 units

Shanghai, February 6 (Gasgoo.com) China's automaker Chery Automobile Co reported all-time high monthly sales of 3, 5000 units in January, up 36.14% year on year and 31.5% month on month respectively.

Chery A5 sold 6,000 units. Chery QQ sales hit 15,000 units. A3, Chery's in-house developed model, saw sales reach 3,000 units last month. The A3 hatchback now is even short in supply due to hot selling.

GM to form JV with Harbin Light Truck Factory

Shanghai, February 2 (Gasgoo.com) General Motors Corp is set to form a joint venture with northeastern China's Harbin Light Truck Factory Co. Ltd after the latter terminates partnership with FAW Group, said sina.com today. The venture may produce pickups, SUVs and light trucks for GM.

Harbin Light Truck Factory started as a military-industrial plant making heavy military trucks. Later it also came to make civilian-use trucks and mini-vans. In the mid-1990s, the factory ended its affiliation to Ministry of Space Industry and partnered with FAW Group to make pickups, Jiefang trucks and mini-vans for the Chinese auto giant. Many of the vehicles have been exported to the Middle East and Africa.