8.13Geely's Volvo deal may be finalized this month

Geely's Volvo deal may be finalized this month

 

http://autonews.gasgoo.com/auto-news/1011731/Geely-s-Volvo-deal-may-be-final
ized-this-month.html

 

Geely's procurement of Swedish auto giant Volvo is approaching the final
stage, the National Business Daily learned from Sweden. Volvo and its owner
Ford Motor Company are expected to make the final approval as early as this
month.

 

In addition to Geely, which will get the majority of Ford's stake in Volvo,
a Swedish company will also acquire the remaining shares. Meanwhile, Ford
will keep 10-15 percent of its presence in Volvo for the following 7-8
years, in order to facilitate the launch of new Volvo models.

 

Ford plans to sell Volvo at around 20 to 25 billion Swedish Kronas (US$2.528
billion to US$3.159 billion), of which Geely will pay 15.6 billion Swedish
Kronas.

 

Previously, the Volvo Engineers Union had expressed dissent about the deal
and wished for a European owner instead of Chinese Geely, an opinion also
shared by higher officials in the Swedish government. However, Ford's
"package sale," which involves a local Swedish company, greatly eased the
dissent.

 

Some experts told the National Business Daily yesterday that Geely's boss,
Li Shufu, will not merge the two companies, but will keep Volvo's operation
independent.

 

Regarding Volvo's XC90 manufacturing site in China, insiders from Geely
mentioned that both Dong Guan in Guangdong Province and Tianjin Municipality
are likely places. However, rumours spread earlier this month saying Beijing
and Bazhou in Hebei Province may also be the host for the Swedish vehicles.

 

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