• Sweden edition
 
Chinese firm close to Volvo Cars bid: report

Chinese firm close to Volvo Cars bid: report

Published: 06 Aug 2009 10:37 GMT+02:00
Updated: 06 Aug 2009 10:37 GMT+02:00

The Swedish automaker's current owner Ford Motor Company is likely to remain a minority shareholder.

DI reports that Ford's board of directors is expected to make a final decision regarding the sale in August. A source close to the sale told DI that internal consensus in Ford will determine who will become Volvo Car's new owner.

Under the guidance of British investment bank Rothschild, Geely has presented a comprehensive outline for the future of Volvo Cars. Several former high-ranking Volvo employees, including previous chairman Pehr G Gyllenhammar and former head of Volvo Cars Hans-Olov Olsson, are involved with Rothschild in various capacities.

Sources told DI that Geely is well-prepared to build up Volvo Car's operations in Sweden and Belgium, and would be an important gateway into the Chinese market.

In June, media reports circulated that Geely had reached an initial agreement with Ford for the purchase of Volvo Cars. Several Chinese newspapers reported that Geely Automotive Holdings planned to buy Volvo and produce a new model of the traditional Swedish brand in China’s Guangzhou Province.

At the time, representatives of both Volvo and Geely said they no knowledge of any agreement to sell the Swedish automaker to Geely. Ford also said the reports were merely market speculation and that they continued to discuss the future of Volvo with a number of interested parties.

Charlotte West (news@thelocal.se)

Your comments about this article

17:11 August 7, 2009 by randyt
"... and would be an important gateway into the Chinese market."

Be carefull Sweden, the Chinese will never allow you to make a car in Sweden and sell it in China without a product killing tariff. They will make Volvo build cars to sell in China, in China! No jobs for Sweden. Just ask GM.

So stockholders may make some cash, but not your workers.
17:12 August 7, 2009 by 2394040
Although I don't live in Sweden (USA actually), I'm very familiar with this. I've seen far too many American jobs leave this country, including several I was involved with, to believe that this sounds good.

If Geely builds even one Volvo model in China, there will be more with the passage of time.

I sincerely hope that the Volvo employees in Sweden have saved some of their earnings over the years. Because if this deal is finalized, they will need those savings.

Ford might say that this is just market speculation, but when it comes to money, China would have the advantage. With 700 million Chinese living on very low wages, how could it NOT have an advantage? Not that the Chinese will be buying a lot of them, though. No doubt what we are looking at is a very low-priced model, but most Chinese could no afford them. These will be for worldwide export most likely.
11:30 August 10, 2009 by voidplay
There is often a feeling in the west that the chinese are responsible for the loss of jobs. True but not entirely, these jobs that made the west prosperous existed because there where no competitors elsewhere in the world. People (elites) in the third world and the middle east bought western goods (cars, planes and weapons) and instead got cheap raw materials (fruits, oil, cotton).

These raw materials are cheap because they are commoditised and because western money is over rated in value. If USA forces Saudi to increase oil production oil prices drop. Yes raw materials is cheap in the west because they have money, money which is of no use to most people in the world except the elites. Most Nigerians can not afford to buy their own oil because they do not have $$.
03:40 August 13, 2009 by Leprehcaun
How can I make this nay more clear?

If ford sells Volvo to China, I'll throw a burning American flag into the American embassy (in case it isn't obvious and in case someone would do it I really need to add that I'm joking/lying. I would never forgive them though).
Today's headlines
Science
Swedish women in two-year sex pill study
Contraceptive pills have been linked to mood swings. Photo: Shutterstock

Swedish women in two-year sex pill study

Three hundred women from across Sweden are taking part in a study designed to demonstrate that modern contraceptive pills don't lead to decreased libido or mood swings. READ  

National
Stockholm 'sinking' oil spill ship safe
The ship was rescued on Thursday. Photo: Swedish Coast Guard

Stockholm 'sinking' oil spill ship safe

After fears a ship carrying around 52 tonnes of oil could sink in Stockholm's archipelago, Sweden's Coast Guard said the vessel had been towed to safety. READ  

National
Dog attack policewoman acquitted on appeal
A scene from a video of the attack published by Dagens Nyheter

Dog attack policewoman acquitted on appeal

A policewoman accused of letting her dog attack a drunk man while she repeatedly hit him with a baton, has had her conviction overturned by a court in Stockholm. READ  

Entertainment
What's On: October 31st - November 7th
Uma Thurman will soon be on her way to Stockholm. Photo: TT

What's On: October 31st - November 7th

Halloween fun and an international film festival are the big events hitting Stockholm this week. We cast our eye over the capital and the rest of the country for the best activities to check out this week. READ  

International
Pirate Bay Swede found guilty in Denmark
Gottrid Svartholm Warg. File photo: TT

Pirate Bay Swede found guilty in Denmark

Sweden's Pirate Bay Founder Gottrid Svartholm Warg was found guilty of hacking crimes in a Danish court on Thursday. READ  

National
Malmö loses out as rare toads move in
The European green toad. Photo: H. Krisp (WikiCommons)

Malmö loses out as rare toads move in

After a rare species of toad moved into southern Sweden's Malmö, builders have had to tone down massive expansion plans in the area. READ  

Politics
Palestine recognized as state by Sweden
Sweden's Foreign Minister is Margot Wallström. Photo: TT

Palestine recognized as state by Sweden

The Swedish government has officially decided to recognize Palestine, with the move announced in a speech by the country's new Foreign Minister Margot Wallström. READ  

Interview
Stockholm's shocking take on Halloween
For ten days, Globen is transformed into a giant pumpkin. Photo: Shockholm

Stockholm's shocking take on Halloween

American Bill Schacht missed the spooky outfits, family feasts and charity events he associated with Halloween when he moved to Sweden. So he did something about it. The Local meets the founder of the capital's annual Shockholm parade. READ  

Business & Money
Huge losses for energy giant Vattenfall
A Vattenfall plant in Germany. Photo: TT

Huge losses for energy giant Vattenfall

Swedish energy company Vattenfall has reported losses for the third quarter in a row. READ  

International
Malala donates prize winnings to Gaza
Malala receives the Children's Prize from Queen Silvia. Photo: TT

Malala donates prize winnings to Gaza

UPDATED: Girls' rights champion Malala Yousafzai, who was in Sweden to accept the World's Children's Prize on Wednesday, said she would use all her winnings to help rebuild schools in war-ravaged Gaza. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Business & Money
Get your own office in Gothenburg or Stockholm - free for a day
Gallery
People-watching: October 30th
National
Sweden remains fourth best for gender equality
National
Timeline: Julian Assange sex allegations
Sport
World Cup ski race on 'fake' Stockholm slope
Blog updates

29 October

Scariest day (Blogweiser) »

"This is what’s frightening me on Halloween. http://www.youtube.com/watch?v=D4OFZVCu8J0&list=UUJu5J7jG4uoYSjWbpFsJBuQ Follow my posts on FB. ..." READ »

 

24 October

Editor’s blog, October 24th (The Local Sweden) »

"Hi readers, Get ready to read our weekly digest of Swedish news in less than 60 seconds. The..." READ »

 
 
 
Society
An Arctic tradition: hunting and handicraft
Society
Stockholm taxis offer free therapy sessions
National
The Local meets Health Minister Gabriel Wikström
Gallery
Property of the week: Österåker
Society
Homeless turtles get Stockholm police ride
National
Construction worker has 'Sweden's best beard'
National
Italian musician jazzes up Sweden's Lapland
Gallery
Zlatan's career in pictures
Finest.se
Gallery
People-watching: October 25th and 26th
Lifestyle
'Swedes are funnier than they think'
National
Swedish town 'like Venice' after heavy rains
Lifestyle
What's On in Sweden: October 24th - 31st
Gallery
People-watching: October 22nd
Gallery
In Pictures: Prince Carl Philip and Sofia Hellqvist
Lifestyle
Eight things to love about renting a Swedish apartment
National
Vasa ship cannon blasted in Sweden
National
Sub hunt: Day-by-day
National
Sub hunt: Stockholm islanders share their fears with The Local
Sponsored Article
The best options for oversea transfers
National
Dentist gives free care to Roma beggars
Gallery
Property of the week: Malmö
Gallery
PHOTOS: 'Foreign activity' in Swedish waters
TT
Society
QUIZ: How good is your Swedish?
Society
The nudity... and nine other things expat men notice in Sweden
Gallery
People-watching: October 15th
Gallery
Your views: Should outdoor smoking be banned in Sweden?
Business & Money
Sweden has 'large hole' in finances
Sponsored Article
Introducing... Finding a job in Stockholm
Society
Monster salmon caught in northern Sweden
Gallery
Property of the week: Lorensberg
National
Scandinavia's child bride
National
Ebola crisis: How is Sweden preparing?
Business & Money
How Sweden is becoming a cashless society
Gallery
Stockholm Burlesque Festival 2014
National
How a little red horse became a symbol for Sweden
Gallery
People-watching: October 12th
Business & Money
The hottest start-ups from southern Sweden
National
Stockholm is 'best' region for well-being
Gallery
People-watching: October 8th
National
Five facts to know about Patrick Modiano
Sponsored Article
How to catch the first lobster of the year
Team SCA
Sponsored Article
All-female SCA team takes off on Volvo Ocean Race
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

994
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN