Geely to be Volvo's owner
From China Car Times:

According to auto.sohu.com, Ford and Geely autos have already struck an agreement to sell Volvo to the privately owned Chinese automaker. Auto.sohu.com says that Vovlo will be relocating a production line to Dongguan city in Guangdong where the first Volvo under Geely stewardship will be made, the first model to be made by a Geely owned Vovl will be the Volvo XC90 SUV.

Details are still sketchy, but it appears that an agreement has to be reached about the details of the purchase, which will also include a technology transfer to Geely. Geely also needs to make clear its intentions for the Volvo brand once they take ownership.

Geely have apparently received the support of the Dongying local goverment to bring Volvo production to the area, furthermore Geely have already applied to the local government for land, and a loan to build a new production facility in the area.

On top of the buying price, Geely are expected to invest a further 10 billion USD into Volvo, to build its brand and to further the brand within China and outside. Out of the Chinese car manufacturers, BAW, Chery, Chang’an, and Geely all had interest in buying Volvo, but it seems that Geely have come out on top this time.

It is still unknown what will happen to the Chang’an-Volvo joint venture once Geely officially takes over the Volvo reigns later this year.

Beijing gives Geely go-ahead to buy Volvo Car unit.

July 29, 2009
Geely Holding Group has been given the go-ahead by China's main economic planning agency on its bid for Ford Motor Co.'s Volvo unit, the Shanghai Securities Journal reports Wednesday.

The report said Geely has received the confirmation letter from the National Development and Reform Commission on oversea acquisitions, becoming the only Chinese automaker that has won official confirmation on such deals.

The Wall Street journal reported in mid-July that Geely is expected to submit a final bid later this month with an offer anticipated to be around $2 billion, citing people familiar with Geely.

The people said the private Chinese automaker has been working for almost three years on its takeover plan for Volvo, and it has hired consultants to advise it and a veteran Chinese finance executive to spearhead the deal.

Another Chinese company, Changan Automobile Group, Ford's manufacturing partner in China, said it would not run for Volvo because of unspecified conditions.

http://autonews.gasgoo.com/auto-news/1011513/Beijing-gives-Geely-go-ahead-to-buy-Volvo-Car-unit.html

Geely Teams of with Friend to take full Ownership of Volvo

From China Car Times
Geely is expected to team up with a Chinese investment company to take on Volvo according to todays reports. Geely believes that it is currently too small as a company to spread itself into Europe, and will partner up with a Chinese investment firm that will be able to provide cash and management skills for Geely’s forthcoming Nordic adventure.

A firm price has not been announced for Volvo, it is rumored to be around the 500million USD cash for the ailing car company, but figures as high as two billion USD and as low as 100 million have been floating around as well.

China Car Times will keep you updated on all Geely-Volvo happenings over the coming days.


This comes at the same time BAIC announced with will co-own and operate SAAB.

Turns out that the deal with BAIC could possibly be a big scam to get hold of GM's technology!

BEIJING -- By helping a Swedish sportscar maker in its bid for Saab, Beijing Automotive Industry Holding Co. may have found another way to get what it wanted in its failed bid for Opel: access to the same advanced GM technology that drives cars from both Opel and Saab.

Beijing Auto's bid for Opel was rejected by General Motors Co., in July, as the companies failed to resolve differences over intellectual property rights. China is a strategic market for GM, and the auto maker expects its sales here to rise by more than 40% for the full year.

Geely to raise Volvo Carsh
From China Car Times:
HONG KONG, Sept 16 (Reuters) – Geely Automotive (0175.HK), the Chinese carmaker whose parent is eyeing Ford’s (F.N) Volvo unit, is set to raise capital through a bond issue in a move that may provide funding for a Volvo bid.

Analysts, however, said the bonds could also be used for Geely to expand its car making capacity rather than to launch an immediate bid for Ford’s $2 billion plus Swedish car unit.

Geely said last week its parent was considering a bid for Volvo with a local government-backed investment firm. [ID:nHKG180468]

A successful deal would boost the profile of Geely, a small, homegrown car maker and give it access to Volvo technology it needs to upgrade its cars.

Yet some analysts have raised concerns about whether the Chinese car maker will be able to make the acquisition work.

“The move is a bit of a surprise to the market,” said Vivien Chan, analyst at Sinopac Securities Corp. “We had a meeting with the company before and they did not mention any funding needs.”

In March, Geely bought Australian automatic transmission supplier Drivetrain System International for $40 million, but a company executive said that deal was paid for from proceeds of a share placement in May. [ID:nHKG66222]

A spokesman for the listed company in Hong Kong said the suspension of trading in Geely shares on Wednesday was related to a “major transaction.” He would not clarify further.

The Hong Kong exchange said the Geely suspension was pending an announcement related to a proposed issue of convertible bonds and warrants. No financial details were immediately available.

Geely shares have dropped more than 18 percent since hitting a life high early last week.

Geely, valued at around $1.68 billion, is working with British partner Manganese Bronze Holdings Plc (MNGS.L) to make and sell London’s iconic black cabs in China. (Reporting by Alison Leung and Michael Flaherty; Writing by Ian Geoghegan; Editing by Jean Yoon)

Is Volvo sold now?

$2 Billion cash available from Korea to purchase Volvo, if Geely is not...

Since buyer is not automotive manufacturing company, partner may be better buying 51% of share.

Aston Martin is better company to buy, but they don't sell. Did consider buying major stock holder from Dubai for Aston.

I am not the buyer........just corp. consulting agent in automotive field.

Hello,

Who is the Korean buyer you speak of?

S

Ford agrees Volvo sale to Geely

http://news.bbc.co.uk/2/hi/business/8428066.stm

Thought y'all might like to read this.........from USA Today -


Ford said Wednesday (12/23) that it is close to selling its loss-making Volvo unit to China's Geely and expects a final deal in 2010.

Ford said in a statement that "all substantive commercial terms relating to the potential sale of Volvo Car Corporation have been settled." Ford chose Geely as the preferred bidder for Volvo in October.

The news pushed Ford stock above $10 a share for the first time since October, 3 2005.

Work on financing and government approvals remains to be completed, Ford said, adding it expects the deal to close "in the second quarter 2010, subject to appropriate regulatory approvals." The announcement did not reveal the amount of Geely's offer.

In a separate statement, Geely said negotiations with Ford have deepened since October and it has also held "constructive" talks with Volvo's management and Swedish union and government officials.

The sale of Volvo would complete Ford's exit from its former portfolio of luxury brands, once called Premier Automotive Group, which was part of the vision of former Ford CEO Jacques Nasser. After Ford acquired Volvo it combined the Swedish brand with Aston Martin, Jaguar and Land Rover under that luxury group.

Ford disbanded Premier Automotive Group in early 2008 after selling Jaguar and Land Rover for $2.3 billion.

It is focusing its efforts on three core brands: Ford, Lincoln and Mercury.

For 10 years, Ford and Volvo have shared technology. For instance, Ford's Taurus sedan is based on Volvo underpinnings. Any agreement with Geely is expected to include details about sharing intellectual property rights and engineering.

"The prospective sale would ensure Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise, while enabling Ford to continue to focus on and implement its core ONE Ford strategy," Ford's statement said.

It said Ford expects to cooperate with Volvo Cars after the sale but it doesn't intend to own any shares.

"If a final purchase agreement is signed, as a world famous Swedish car brand, Volvo will continue to lead the trend of world auto technology in safety and environmental protection, and will quickly increase its unique competitive status in the Chinese market," Geely said.

Volvo spokeswoman Maria Bohlin called the announcement "a step in the process," but noted that the deal "still isn't complete."

Auto analyst Matts Carlson estimated the price tag for Volvo at between $2 billion-$2.3 billion and said a Geely takeover would be good for Volvo.

"Volvo gets a new owner with a lot of money and which I expect will mostly leave it alone because it knows more about vehicle development, vehicle sales and vehicle distribution," said Carlson, of the Goteborg Management Institute.

He said Volvo will also get a boost from access to China's fast-growing auto market.

What a HUGE boost for Geely. Access to better auto technology, future access to the american market through the existing Volvo dealer network, a positive reaction from the international auto and financial markets......a win/win deal from what I see. I can see Geely leaving Volvo alone for right now and using it's newly acquired Volvo technology to upgrade and improve it's Geely/Emgrand/Gleagle products........THEN in about 3-4 years setting up a new entry level brand in America/Europe through the Volvo dealerships (perhaps the Emgrand products). Think about it people.....Geely didn't just buy a car company - they bought a EXISTING DEALER NETWORK (complete with infrastructure in place) in America and Europe (and Japan too, I assume). Geely just bought themselves a ticket to the "big 3 auto market" party - the spotlight will be on them now to see WHEN and HOW they will show up to the party.

The completion of the acquisition of Volvo by the Chinese Geely approaches: the largest carmaker in the Asian country said they had received "strong support" by the Beijing government for the transaction.

During a press conference held today in Hong Kong, the CEO of Geely, Gui Shengyue, admitted that "without the support of the government would not be possible to buy Volvo", leaving leaked much more than that on the rapid formalization of a public financial support.

Finally it should be noted that in addition to this extraordinary maneuver, Geely (like other Chinese homes) benefit from a program of government subsidies will be extended to 2010. Will act as the other major manufacturers in the Asian country before the strengthening of Geely in terms of technology? Chery, the largest rival, said long ago that might not buy a foreign car. We'll see ...

Geely will if all the technologies Volvo will become the most reliable seal of China, the Volvo is now the best house on the technologies on safety and environment, and have invented the city and many safety systems to drive better and consume less.

also geely will implement an electric car based on Volvo C30 elettric However, when they say to lower the production costs of the Volvo worry me a bit ', volvo car makes perfect, and I fear that in this way there would be a drop in precision assembly and quality of materials.

A lot of press on this... hope it actually happens

Chinese car maker gears up to buy Volvo


News of the sale comes just days after General Motors revealed it had off-loaded technology from its Saab 9-3 and 9-5 models to Beijing Automotive Industry Holding Company (BAIH).

GM has struggled to find a buyer for the rest of its Swedish brand since Dutch sports car maker Koenigsegg backed away from a potential deal last month.

BAIC yesterday revealed it paid GM $200 million (£125m) for the technology, which will allow it to produce Saab-based models as early as 2011.

Dutch luxury car maker Spyker was also in talks to buy Saab, but those negotiations broke down last week, with GM saying it would close down the Swedish marque.

GM is also selling its rugged Hummer brand to construction machinery maker Sichuan Tengzhong Heavy Industrial Machinery Corporation. Both Ford and GM are selling off their "non-core" assets – such as foreign brands Volvo and Saab – to allow the US giants to concentrate on marques sold in their home market.

Ford bought Volvo – renowned for producing the world's safest cars – in 1999 for $6.45 billion but has wanted to offload the firm for the past year. Ford acquired Volvo Cars, while the trucks division carried on trading as a separate Swedish company.

Under Ford's ownership, Volvo continued to shed its "boring and boxy" image and produced award-winning vehicles, including the XC90 sports utility vehicle and the smaller XC60, which this month was named "truck of the year" at the Los Angeles Motor Show.

Volvo spokeswoman Maria Bohlin called the announcement "a step in the process", but noted that the deal "still isn't complete".

Ford said the deal with Geely was still subject to financing and government approval.

Matts Carlson, a motor industry analyst at Goteborg Management Institute, estimated that the price tag for Volvo would be between $2bn and $2.3bn and said a Geely takeover would be good for the Swedish brand.

Carlson added: "Volvo gets a new owner with a lot of money and which I expect will mostly leave it alone because it knows more about vehicle development, sales and distribution."

If his estimate is accurate then the deal would be the largest made by a Chinese car maker.

The Volvo Buyout: What Geely Really Gets

From China Car Times:
Since early 2009 we have constantly hear rumours that Geely are planning to take over Volvo from Ford, eventually in late 2009 the deal was announced; Geely would become Volvo’s new master. A final price hasn’t been announced, but it is expected to be somewhere in the range from 1.5 billion to 2 billion RMB, considerably less than the 6 billion USD that Ford originally paid for Volvo.

The wording of the Volvo-Geely deal has yet to be finally announced, but some insider information that was leaked to the Chinese internet earlier today claims that:

Geely gets 9 products – S40, S60, S80, C70, C30, XC90, XC60, V50, V70
Three platforms – P1, P2, P24. The P1 platform is especially for compact cars, whilst the P2 platform is for larger sized cars
A worldwide dealership network of 2000 dealers
Access to Volvo supply chain, which will guarantee quality and delivery of products
All Volvo branding
The shopping list is fantastic for Geely, and will raise it from being a backwater car maker to an international player overnight. Geely are apparently hoping for world Volvo sales to hit 2 million units per year worldwide in the next 4 to 5 years, but in the meantime they are apparently aiming for sales of 1 million globally. Currently global sales of Volvo cars are at around 400,000 units, whilst China only accounts for a mere 13,000 cars. Geely are planning to give Volvo their biggest lease of life here in China by giving Volvo some more Chinese ‘design elements’ to make it more popular with local tastes, which doesn’t just mean they’ll be stretching yet more wheelbases to appeal to the Audi A4L crowd.

Financially speaking, Geely are apparently aiming to make a profit from Volvo within a year of ownership, and before 2015 they are aiming to get their investment in Volvo back.



However, some are skeptical saying that Geely will have to rebuild the supplier chain because Volvo's suppliers under Ford threatened to pull out over fears that Geely will get their hands on part drawings and hand them to Chinese companies to produce cheap sub standard parts. And according to some sources, they are also fearful of Geely's "Intellectual property abuse". God knows what that means but I think Geely can handle it. Chinese copy cars have been produced without the need for blueprints.

"However, some are skeptical saying that Geely will have to rebuild the supplier chain because Volvo's suppliers under Ford threatened to pull out over fears that Geely will get their hands on part drawings and hand them to Chinese companies to produce cheap sub standard parts."

What the? I mean, worrying about things is one thing, but this borders on plain and clear stupidity. I mean, how many rigs do Volvo parts fit on, being that they're a "backwater" carmaker, eh? Sheesh.

I think it is Western anti-Chinese sentiment simply because the change of management to one they hadn't approved. They seem adamant though, but the folks at Jaguar and Range Rover were happy with the switch to Indian company Tata Motors.

Geely Planning Volvo plant in Beijing

From China Car Times and Rueters:
Reuters is currently reporting that the Volvo – Geely deal is going to see Geely build a Volvo plant near Beijing city where it will be able to pump out several thousand Volvo models per year for the Chinese market place, which is where Geely hopes to make the majority of its money back from the Volvo investment. However, the Chinese media are also reporting that Chang’an and Ford are planning to put the Volvo S60 into production via the Chang’an-Ford-Volvo JV, although it is expected to be imported first to gauge initial demand before going into production. The Chinese press are also reporting that the Volvo purchase will be signed and sealed on February 8th 2010, which is just two weeks from now.

From Reuters:

BEIJING (Reuters) – China’s Zhejiang Geely Holdings will produce up to 300,000 Volvo cars a year at a new factory in Beijing as part of its plan to pull the Swedish brand out of the red by 2011, a source said on Tuesday.

Zhejiang Geely, parent of Hong Kong-listed Geely Automobile (0175.HK), aims to complete the purchase of Ford’s (F.N) Volvo unit for up to $2 billion by May, according to the source and to a document submitted to regulators by Geely and seen by Reuters.

The addition of such capacity would nearly double Geely’s current output, which reached 321,900 units in 2009 for the entire group, up 45 percent from a year earlier. Geely has set an ambitious annual sales target of 2 million cars by 2015.

Analysts said the 2011 break-even target could be a stretch for Geely, which has no experience running a foreign company.

“I think it’s optimistic to break even next year as it needs to build a plant first and it might take time for Chinese buyers to accept a made-in-China Volvo,” said John Zeng, an analyst with IHS Global Insight. “It will break even eventually but that’s going to take time.”

Geely Automobile Holdings Ltd is China’s largest private car maker. Its charismatic founder, Li Shu Fu, sometimes likened to Henry Ford, has shown global ambitions for Geely, which means “lucky” in Chinese.

Ford, the only major U.S. automaker to avoid bankruptcy last year, is selling its luxury Swedish brand to free up cash as it climbs out of the industry’s worst ever downturn.

The deal would see Geely acquire Volvo for $1.5 billion to $2 billion, with an expected closing date in May after the signing of the initial agreement next month, according to a copy of the Geely document.

Geely said in December it was near such a deal, and later added it had strong support from the Chinese government for the purchase.

Geely will set up a separate company with registered capital of 8 billion yuan ($1.17 billion) to buy Volvo. Foreign strategic investors and the Hong Kong-listed Geely will hold a 51 percent stake of the company.

Geely shares were down 3.7 percent, amid a broader market sell-off and following a run-up that saw the shares more than double since mid-September on hopes for a Ford deal.

MAINTAINING SWEDISH OPERATIONS

The purchase would be the biggest in a recent spate of similar acquisitions of distressed global assets by Chinese carmakers, which have thrived during the global downturn due to strong incentives for their industry under Beijing’s 4 trillion yuan ($586 billion) stimulus plan. Under the deal, Geely will keep the brand and operations in Sweden, including Volvo’s headquarters, production facility and research center, intact after the acquisition.

“(Geely) will keep the core value of Volvo as a luxury brand unchanged, while improving it with the development in emerging markets, and add more fashionable, dynamic and passionate international elements,” said the document.

Volvo is expected to post earnings before interest and tax (EBIT) of $703 million in 2015, the document said.

A Geely representative declined to comment.

Among other deals involving Chinese vehicle makers, Sichuan Tengzhong Heavy Industrial Machinery is in the process of buying GM’s GM.UL Hummer brand, though that deal has yet to close and GM said earlier this month it is still awaiting approval by Chinese regulators.

Last month, Beijing Automotive Industry Holding Corp (BAIC) sealed a deal to buy technology from GM’s Saab unit for $200 million, saying it would use the technology to launch an aggressive campaign to develop its brand both at home and overseas.

The buying spree comes as China zoomed past the United States to become the world’s largest auto market last year.

Vehicle sales in the country jumped 46 percent to a record 13.6 million units for the year, according to the China Association of Automobile Manufacturers, well above the 10.4 million cars and light trucks sold in the battered U.S. market.

Analysts expect China’s car sales to continue growing this year under renewed government incentives, though they expect the growth rate to slow to about 10 percent.

Are Volvo feeling Geely for 2010? They should be.

Ford has reached a final deal to sell Volvo to Geely for $1.8 billion.

http://www.autoblog.com/2010/03/28/ford-finalizes-deal-to-sell-volvo-to-geely-for-1-8-billion/

FORD REACHES AGREEMENT TO SELL VOLVO CARS AND RELATED ASSETS TO GEELY; SALE EXPECTED TO CLOSE IN THIRD QUARTER


DEARBORN, Mich., 28, 2010 – Ford Motor Company [NYSE: F] today announced it has entered into a definitive agreement to sell Volvo Car Corporation and related assets to Zhejiang Geely Holding Group Company Limited.
The sale is expected to close in the third quarter of 2010, and is subject to customary closing conditions, including receipt of applicable regulatory approvals.

The purchase price for Volvo Cars and related assets (primarily intellectual property) is $1.8 billion (U.S.), which will be paid in the form of a note in the amount of $200 million (U.S.), and the remainder in cash. The cash portion of the purchase price will be adjusted at close for customary purchase price adjustments relating to pension deficits, debt, cash and working capital, the net effect of which could be a significant decrease in the cash proceeds to Ford.

"Volvo is a great brand with an excellent product lineup. This agreement provides a solid foundation for Volvo to continue to build its business under Geely's ownership," said Alan Mulally, Ford's president and CEO. "At the same time, the sale of Volvo will allow us to further sharpen our focus on building the Ford brand around the world and continue to deliver on our One Ford plan serving our customers with the very best cars and trucks in the world."

Ford will continue to cooperate with Volvo Cars in several areas after the sale has been completed in order to ensure a smooth transition, but will not retain any ownership in the Volvo Cars business.

Following completion of the sale, Ford will continue to supply Volvo Cars with, for differing periods, powertrains, stampings and other vehicle components.

As part of the sale, Ford also has committed to provide engineering support, information technology, access to tooling for common components, and other selected services for a transition period to ensure a smooth separation process.

Ford and Geely have established agreements to govern the use of intellectual property; these agreements will allow both Volvo and Ford to deliver their business plans and provide appropriate safeguards against misuse. These agreements also will allow Volvo Cars to grant sublicenses to certain portions of Ford's intellectual property used by Volvo Cars to third parties, including Geely.

"The Volvo team has done an exceptional job of restructuring its business and remaining focused on delivering its plan during the sale process," said Lewis Booth, Ford's chief financial officer. "With Ford's continued investment in Volvo, it has launched its best-ever product range and remained true to its core values – safety, quality, environmental responsibility and modern Scandinavian design.

"We look forward to continuing to work with Volvo Cars, and wish the management team, employees and new owners every success for the future."

"Zhejiang Geely would like to pay tribute to Ford's stewardship of the Volvo brand, and we look forward to continued cooperation as Volvo embarks on the next stage of its evolution with Geely," said Li Shufu, chairman of Zhejiang Geely Holding Group Company Limited.

Stephen Odell, CEO of Volvo Cars, added, "The Volvo management team fully endorses Ford's sale of Volvo Cars to Geely. We believe this is the right outcome for the business, and will provide Volvo Cars with the necessary resources, including the capital investment, to strengthen the business and to continue to move it forward in the future.

"Geely has been very supportive of Volvo Cars' business plans and management team. We look forward to building a strong relationship between Volvo Cars and Geely, and to maintaining a strong relationship with Ford in those areas where we will continue to work together to ensure a smooth transition."

Geely Chairman flies to Sweden to wrap up sale

From China Car Times:
It seems the big man of the Chinese automobile world is likely in the air right now on his way to officially buy the Volvo unit from a beleagured Ford International that is just bouncing back from last years devastating economy. The Volvo purchase is likely to give Volvo a massive leap in terms of technology and power over its domestic Chinese rivals.

The WSJ has the lowdown:

The chairman of China’s Zhejiang Geely Holding Group Co. traveled to Sweden Friday to finalize his company’s acquisition of Ford Motor Co.’s Volvo car unit, a landmark deal for China’s burgeoning car industry that also poses serious challenges for Geely.

Geely Chairman Li Shufu is expected to preside over the signing of the deal in Sweden as early as Sunday, according to two people close to the Chinese company.

Under the preliminary agreement, Geely will pay $1.8 billion for Ford’s money-losing Swedish car brand with financing from banks in China, the U.S. and Europe, including low-interest loans guaranteed by the governments of Sweden and Belgium, one of the two people said. Geely’s Hong Kong-listed unit, Geely Automobile Holdings Ltd., and some Chinese local governments also would invest in the deal, the person said. He wouldn’t identify those investors.

A final deal would be the culmination of years of planning by Geely and intensive negotiations with Ford over the last 18 months. The deal would make Volvo one of the most prominent foreign brands to be purchased by China, and would mark the first time a Chinese company has acquired the full operations of a major foreign auto maker.

It would also be the biggest step so far in a broader push by China to create a handful of globally competitive auto makers out of an industry that today is largely fragmented. That effort has had mixed success: Beijing Automotive Industry Holding Co. reached an agreement in December to acquire certain assets of General Motors Co.’s Saab unit, but another Chinese company, Sichuan Tengzhong Heavy Industrial Machinery, last month abandoned a planned purchase of GM’s Hummer unit after failing to gain Chinese government approval.

Chinese car makers are gaining strength thanks in part to a home market that has boomed as the rest of the world has sputtered. Passenger-vehicle sales in the country rose nearly 50% last year, with total vehicle sales exceeding 13 million, putting China ahead of the U.S. as the world’s biggest auto market.

Ford and Geely signed a framework agreement for the Volvo transaction in December, and Ford said it expected a definitive agreement to be signed by the end of March and the sale to be finished by midyear.

“The deal is almost done, although there are still some issues that need to be worked out,” said one of the two knowledgeable individuals Friday. “If everything goes well,” he said, the signing will likely be Sunday.

A Ford spokesman didn’t immediately respond to a request for comment.

Chinese Vice President Xi Jinping is scheduled on Saturday to start a three-day visit to Sweden as part of a four-nation European tour. It’s not clear if he would be involved in a Geely-Volvo signing ceremony.

According to one of the two knowledgeable individuals, Mr. Li is elated to clinch the Volvo deal after years of planning, but he feels that the final agreement deal is “only the first step in the direction” Geely has charted for its investment in Volvo, and that “there is a lot more work left.”

Mr. Li plans few changes for the Swedish brand. Geely, one of China’s biggest privately owned auto makers, is expected to keep Volvo’s current management teams unchanged and has no plans to shutter assembly and other factories Volvo operates in Sweden and Belgium or lay off workers employed by those facilities, the person said.

Still, the person said Geely has picked a team within the Hangzhou-based auto company to oversee the Swedish unit. One member of that team is Peter Zhang, a senior Geely executive who played a key role in putting together the financing for the deal. The person declined to say who would head the Volvo team at Geely.

Mr. Li doesn’t plan to change Volvo’s brand positioning significantly, but he is interested in adding two or three bigger, more-luxurious cars to its lineup over the next three to four years to boost global sales, the person said.

Under an aggressive turnaround plan Mr. Li has developed, Volvo would aim to sell nearly a million vehicles a year within four to five years, up from recent annual sales of about 400,000 vehicles. The plan centers on expanding sales in China but also sets ambitious goals for Volvo’s traditional markets of Europe and North America.

Geely plans to build a new Volvo plant in China capable of producing 300,000 vehicles a year as it looks to draw on China’s market potential and inexpensive labor to raise sales and cut costs. Mr. Li said in a recent interview that Tianjin and Beijing are among his top picks for the plant’s site, but the knowledgeable person said Geely was also looking at Guangzhou and Shanghai.

Geely believes Volvo has the potential to sell 200,000 cars a year in China. The company wants to use Volvo’s manufacturing capacity fully in Europe to sell 600,000 vehicles there and in North America.

This is sooo exciting. Last year we say Indian Automaker buy Jaguar and LandRover. Now we (finally) see big China car manufactur buy luxury brand VOLVO!

I'm pretty sure that Geely will succeed in selling many more Volvo in China, but I wonder about their plans for the european market. Volvo has been on a downward trend for several years now, the new S60 might not be enough to reverse it.

I hope they will try electric cars. Selling chinese cars through Volvo european dealers would not work, but it would be totally different with an electric model.

i hope geely transfer some technology off volvo into geely

Reuters reports that Geely's Li Shufu said that Volvos will not be built in China (by Geely). Chang'an's current contract to continue to build the Volvo S40 and S80 in Chonqing will eventually expire.

do you guys think they will move most of the volvo manufacturing plants to china? there is really no point to keep the operations in sweden, other than to benefit swedes. i think they should move all manufacturing to china and bring a few head managers from the old volvo to china. have them work there for a few years. train the locals, and then get rid of the swedes.

What a HUGE boost for Geely.



Access to better auto technology,

future access to the american market through the existing Volvo dealer network,

a positive reaction from the international auto and financial markets......

a win/win deal from what I see.

I can see Geely leaving Volvo alone for right now and using it's newly acquired Volvo technology to upgrade and improve it's Geely/Emgrand/Gleagle products........
THEN in about 3-4 years setting up a new entry level brand in America/Europe through the Volvo dealerships (perhaps the Emgrand products).

Think about it people.....Geely didn't just buy a car company - they bought a EXISTING DEALER NETWORK (complete with infrastructure in place) in America and Europe (and Japan too, I assume).

Geely just bought themselves a ticket to the "big 3 auto market" party - the spotlight will be on them now to see WHEN and HOW they will show up to the party.

JM this is what USA Today should have included but for the breadth of view you have.
Hope you don't mind my putting some emphasis on your valuable insight...

will Geely's car quality skyrocket after this acquisition? Do they actually replace some volvo superior technology on to Geely's?

NO chance.

Hmm I would like to see a car built by the joint partnership. Maybe Geely has what it takes to breath some life back into Volvo.

do you guys think they will move most of the volvo manufacturing plants to china? there is really no point to keep the operations in sweden, other than to benefit swedes. i think they should move all manufacturing to china and bring a few head managers from the old volvo to china. have them work there for a few years. train the locals, and then get rid of the swedes.

Not so fast, that would kill the brand! Many people buy Volvo cars in Europe, because they have a swedish feel, and because they're built in Sweden by great workers. A chinese Volvo might sell in China, but nobody would buy it in northern Europe.

i think geely acquisition of volvo is their campaign to expand their european market. Because when they sell volvo in europe, they are making the exchange difference of euro and yuan. The money that earn allow them to finance other projects in China. Also volvo technology will help geely a great deal. Beside, Geely has the capabilities to produce volvo cheaper than any european company can make it in europe.

EU gives go ahead for Volvo aquisition

From Associated Press:
European Union regulators on Tuesday approved Chinese carmaker Geely to buy Sweden’s iconic Volvo Cars.

The European Commission said it sees no antitrust problems with Zhejiang Geely Holding Co.’s $1.8 billion acquisition of Volvo Cars from Ford Motor Co. because the takeover won’t give either company the power to damage rivals.

Geely sells hardly any cars in Europe and Volvo only has “very limited” operations as a car parts supplier, it said.

Geely’s acquisition of Volvo from Ford Motor Co. has been heralded as a breakthrough deal for China’s auto industry, giving one of its most ambitious automakers a well-known, prestigious global brand and access to top-tier technology.

The deal could give Geely a critical edge in China, which is the world’s biggest auto market and one in which foreign brands often dominate. It will also gain its first major foothold in Europe.

Geely, meaning “lucky” in Chinese is a privately-run company that has gradually built its business selling cars, motorcycles and scooters with little government support.

It teamed up with the Chinese state-owned investment firm Daqing to buy Volvo. It says it will spend an extra $900 million to expand production and make Volvo profitable again.

The EU’s executive said its Tuesday approval would not affect any decision it could make on European state subsidies for Volvo.

The car maker received state guarantees from Sweden last year to help it secure euro500 million from an EU government-backed bank. The money was earmarked to develop fuel-efficient cars.

Ford has been trying to sell Volvo since late 2008 to focus on its core Ford, Lincoln and Mercury brands.

Chinese govt approves Geely's purchase of Volvo

Zhejiang Geely Holding Group Co is expected to complete it takeover of Swedish luxury car brand Volvo from US automaker Ford Motor Co on Monday after getting government approval for the deal.

Ministry of Commerce officials told China Daily on Thursday that the government cleared the Volvo deal on Monday 26, after the National Development and Reform Commission cleared the proposal last week.

Geely has also got the necessary anti-trust approvals from the European Union and the US government for the deal.

"With this the decks are now clear for Geely to complete its acquisition of Volvo and start manufacturing the brand in China," said Wang Zhile, director of the research center on transnational corporations under the Ministry of Commerce.

Yuan Xiaolin, Geely's spokesman for the Volvo deal was unavailable on Thursday for comment. However, unnamed sources from Geely told China Daily that the Zhejiang-based automaker will hold a formal function on Monday to complete the deal.

Geely's shares surged nearly 11.32 percent and closed at HK$2.95 per share in Hong Kong on Thursday.

Privately owned Geely paid $1.8 billion to acquire the Volvo car brand from Ford on March 28 this year. It was the biggest overseas deal made by Chinese automakers in recent times.

Geely Chairman Li Shufu had at that time indicated that the company would invest $900 million as operating capital in Volvo apart from the $1.8 billion purchase price.

Geely said on July 15 that it had appointed Li as the chairman of the board at Volvo Car Corp. At the same time it appointed the former president and CEO of Volvo Hans-Olov Olsson as the vice-chairman.

More appointments to the board and top management, including the chief executive and chief financial officer, may be made next week, said sources.

Analysts said the Volvo buy will help Geely gain a competitive edge in China and also a major toehold in Europe.

Pursuant to completion of the deal, Geely is likely to start making Volvo cars locally.

Though it has not announced a location yet, indications are that it may consider Jiading in Shanghai, Chengdu in Sichuan, Beijing or Tianjin as possible production sites.

During the firsts six months of the year, Volvo sold 15,497 cars in China, up 88 percent over last year.

That compares to the Swedish luxury brand's 5.2 percent and 9 percent year-on-year decline in major markets like the United States and Germany.

Geely plans to increase Volvo's annual sales in China to 150,000 units by 2015, said sources.

http://www.chinadaily.com.cn/china/2010-07/30/content_11070251.htm

Ford officially sells Volvo to Geely for $1.8b

After months of protracted negotiations, Ford has officially sold Volvo to Zhejiang Geely Holding Group Company Limited – aka Geely – for $1.8 billion.

The Chinese automaker originally included a $200 million note and the balance in cash, and today, it paid the remaining $1.3 billion to wrap up the sale, although the final sale price won't be released until later this year and could put more cash in the pockets of FoMoCo.

Under the terms of the sale, Ford will continue to supply Volvo with everything from powertrains to stamping systems and other vehicle components for differing periods of time. Additionally, Ford and Geely have come to an agreement on intellectual property usage, with Volvo allowed to grant sub-licenses to specific systems to third parties, including Geely.

Stefan Jacoby – formerly of Volkswagen – will take the helm as the new President and Chief Executive of Volvo Cars, and under the new ownership, the automaker will continue to keep it headquarters and manufacturing centers in Sweden and Belgium.


PRESS RELEASE
FORD MOTOR COMPANY COMPLETES SALE OF VOLVO TO GEELY

DEARBORN, Mich., Aug. 2, 2010 – Ford Motor Company [NYSE: F] today announced it has completed the sale of Volvo Car Corporation and related assets to the Zhejiang Geely Holding Group Company Limited.


The total purchase price for Volvo and related assets set forth in the agreement signed in March 2010 was $1.8 billion, including a $200 million note and the balance in cash, with the cash portion subject to customary purchase price adjustments at closing. Pursuant to the terms of the agreement, Geely today issued the note and paid $1.3 billion in cash to complete the sale. The estimated purchase price adjustments used at closing are expected to be finalized and settled following final true-up of the purchase price adjustments later this year. The final true-up is expected to result in additional proceeds to Ford.

"Volvo is an excellent brand with a strong product line, and it has returned to profits after a successful restructuring. We are confident Volvo has a solid future under Geely's ownership," said Alan Mulally, Ford's president and CEO. "At the same time, the sale of Volvo will allow us to sharpen our focus on the Ford brand around the world and continue to deliver on our One Ford plan serving our customers with the very best cars and trucks in the world."

Ford will continue to cooperate with Volvo in several areas to ensure a smooth transition, but has not retained any ownership in the Volvo business. Ford will continue to supply Volvo with, for differing periods, powertrains, stampings and other vehicle components. Ford also has committed to provide engineering support, information technology, access to tooling for common components, and other selected services for a transition period.

Agreements between Ford and Geely govern the use of intellectual property; these agreements will allow both Volvo and Ford to deliver their business plans and establish the proper use of each other's intellectual property.

"The Volvo team has made tremendous progress in restructuring its business and delivering results during the sale process," said Lewis Booth, Ford executive vice president and chief financial offer. "We believe this agreement will provide Volvo with the necessary resources, including the capital investment, to strengthen the business and to continue to move it forward in the future. We wish Volvo's management team, employees and new owners every success for the future.

"Ford appreciates the support of the Volvo management team, Volvo's labor unions and the government officials in Sweden and China during this transaction," Booth added.

As previously announced, Stephen Odell, CEO of Volvo Car Corporation, is returning to Ford as group vice president and Chairman and CEO of Ford Europe. Stuart Rowley, CFO of Volvo Cars, is returning to Ford as chief financial officer, Ford Europe.

"Volvo is a proud company with a talented and dedicated team of employees," Odell said. "I am especially pleased that with Ford's continued investment in recent years, Volvo is well positioned for the future with an exciting range of products that remain true to its core values – safety, quality, environmental responsibility and modern Scandinavian design."


Geely Holding Group Completes Acquisition of Volvo Car Corporation

Stefan Jacoby Named President and Chief Executive of Volvo Cars; New Board Unveiled

HANGZHOU, China and GOTHENBURG, Sweden, Aug. 2 -- Zhejiang Geely Holding Group Co., Ltd. ("Geely Holding Group"), one of the fastest-growing car manufacturers in China, today announced it has completed the acquisition of 100 per cent of Volvo Car Corporation ("Volvo Cars") from Ford Motor Company.
Geely also announced that Stefan Jacoby, the Chief Executive of Volkswagen Group of America, would become President and Chief Executive Officer of Volvo Cars.

Li Shufu said: "This is a historic day for Geely, which is extremely proud to have acquired Volvo Cars. This famous Swedish premium brand will remain true to its core values of safety, quality, environmental care and modern Scandinavian design as it strengthens the existing European and North American markets and expands its presence in China and other emerging markets."

Stefan Jacoby, the new President and Chief Executive of Volvo Cars, said: "I am honoured to join a company with the prestige and growth potential of Volvo. Our employees, suppliers, dealers -- and above all our customers -- can be confident that Volvo will preserve its special status as the industry leader in vehicle safety and innovation -- even as it pursues new market opportunities."

Following completion of the transaction, Mr. Stefan Jacoby will join the board of Volvo Cars, chaired by Li Shufu, Chairman of Geely Holding Group. The board will comprise several new directors including Hans-Olov Olsson, a former President and Chief Executive of Volvo Cars and a former Chief Marketing Officer of Ford, who will become Vice-Chairman of the board.

As announced on the signing of the stock purchase agreement on 28th March, 2010 Geely has agreed to pay USD 1.8 billion for Volvo Cars, which included a USD 200 million note with the balance paid in cash.

Geely issued the note and paid USD 1.3 billion in cash for Volvo Cars, utilising financing from Chinese institutions and its own balance sheet as well as international capital market resources. The closing consideration reflects adjustments in areas such as pension obligations and working capital.

Under the new ownership, Volvo Cars will retain its headquarters and manufacturing presence in Sweden and Belgium; and its management will have the autonomy to execute on its business plan under the strategic direction of the board.

As part of the transaction, Volvo and Ford will maintain close component and supply relationships, ensuring continuity in areas where they provide supply to each other.

Completion of the acquisition, which follows more than a year of talks between Geely and Ford, was marked at a signing ceremony in London attended by Li Shufu and Lewis Booth, Chief Financial Officer at Ford.

Mr. Li thanked Ford and the Volvo Cars management for their support during the transaction negotiations, and also paid tribute to union and government officials with whom Geely built close contacts.

"The signing and completion of this acquisition reflects the commitment of Ford and Volvo executives to the future of this company, along with the vital input of labour representatives and government officials in Sweden, Belgium and China as well as other relevant countries," said Mr. Li.

The Geely Chairman added that Mr. Stefan Jacoby will succeed Stephen Odell as Volvo Cars' President and Chief Executive, taking up his role on 16th August, 2010.

Hans-Oskarsson, deputy Chief Financial Officer, will become acting CFO of Volvo Cars, replacing Stuart Rowley. Mr. Odell and Mr Rowley are moving to leadership roles at Ford of Europe.

Along with the new management team at Volvo Cars, Geely today named the full board of directors for the Swedish carmaker, comprising:

Li Shufu (Chairman)
Hans-Olov Olsson (Vice-Chairman)
Freeman H. Shen
Hakan Samuelsson
Dr. Herbert Demel
Lone Fonss Schroder
Winnie Kin Wah Fok

The board -- which will include three labour representatives nominated by unions at Volvo Cars -- will assume its duties on completion of the transaction.

http://www.autoblog.com/2010/08/02/ford-officially-sells-volvo-to-geely-for-1-8b/

Not so fast, that would kill the brand! Many people buy Volvo cars in Europe, because they have a swedish feel, and because they're built in Sweden by great workers. A chinese Volvo might sell in China, but nobody would buy it in northern Europe.
please save the propaganda. i doubt swedish workers are greater than chinese ones. just because people have been brain washed into thinking europe made cars are better does not actually mean they are. the point of a business is to maximise profits, not by giving hand outs to great swedish workers. also, i am sure if geely moves volvo operations to china, it will also get govt subsidies, furthering their economic advantages. theres a reason why volvo sold their firm in the first place. maybe because the current system isnt working, and the great swedish workers were not doing their job right. if geely continues the same great swedish path that volvo had then geely will end up having to sell volvo again. this time for $500 million.

Volvo's new factory to settle in Chengdu, Shanghai, Daqing

November 12, 2010
Geely chairman Li Shufu said on Nov. 10 that Volvo's new board has now decided to make China its "second home market” outside of Sweden and plans to build three plants in Chengdu, Shanghai and Daqing.

Li Shufu, chairman of Zhejiang Geely Holding Group, met Swedish King Carl XVI Gustaf along with Swedish scientists and businessmen in Zhejiang's capital Hangzhou, where Geely is based, and answered questions concerning Volvo's future and whether it will cause job losses in Sweden.

Li said in the past three months, the new Board of Directors held two meetings, and the Board and management decided to build China into Volvo's second home market. It announced the management team in China and plans to set up three plants in Chengdu, Shanghai and Daqing. Li said Volvo's layout in China "is well underway."

Li said that Volvo's strategy in the future is local development, local production and local sales.

"Europe's Volvos are to be produced in Europe. Volvos in the Chinese market are to be produced in China," he said.

The delegation of King Carl XVI Gustaf and the Royal Swedish Academy of Engineering Sciences was invited by the Chinese Academy of Engineering to visit China.

Chinese carmaker Geely Holdings Group Co. Ltd. and Ford Motor Co. signed the acquisition deal on March 28 and Geely took over Volvo this August after paying 1.5 billion U.S. dollars.

Geely's 100 percent ownership of Volvo provided the Chinese automaker with Volvo's nine vehicle models, three of its latest production platforms as well as production capacity of 600,000 units and more than 2,000 sales locations worldwide.

As soon as the agreement was completed, the Chinese group named Li Shufu, chairman of the board for Zhejiang Geely Holding Group, as the chairman of Volvo. Volvo's brand value is estimated at 2 billion U.S. dollars.

http://autonews.gasgoo.com/china-news/volvo-s-new-factory-to-settle-in-chengdu-shanghai-101112.shtml

after the integration of Geely and Volvo，Geely will definitely be developing fast.