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Ford 'examining Chinese Volvo bid'

Published: 25 Sep 2009 10:22 GMT+02:00
Updated: 25 Sep 2009 10:22 GMT+02:00

Ford's chief executive Alan Mulally has said plans to sell Swedish subsidiary Volvo Cars are proceeding, despite rumours two weeks ago that Chinese automaker Geely had lost interest in the company.

The Wall Street Journal, citing sources close to the negotiations, reported on Thursday that Ford is currently analyzing a $2.5 billion bid from China's Geely Holding Group.

Volvo Cars' CEO Stephen Odell refused to comment on the rumours that Geely was to take over the company.

"It's up to Ford, not us, to comment on the sale," he said on Friday.

According to Swedish newspaper reports in mid-September, Ford had informed Volvo management that Geely had withdrawn a previous offer for the company.

Mikael Sällström, head of the union group at Volvo in Gothenburg, said workers were in the dark:

"Our problem is that we are being given too little information about a potential sale. We also know very little about Geely," he said.

TT/The Local (news@thelocal.se)

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Your comments about this article

12:59 September 25, 2009 by Leprehcaun
What? But what? No? What?

Didn't Geely remove their bid? :'( I was so happy, why the speculations about them buying volvo again? Someone? Please explain..
21:29 September 25, 2009 by mibrooks27
You allowed a U.S. corporation in your door. So, Volvo will be peddled around by Ford as they attempt to blackmail Sweden into coughing up ever more money. This is what you can expect when you do business with any U.S. business.
01:01 September 26, 2009 by nauticv70
Yes, I think that's a completely appropriate response to this article. All U.S. corporations are evil, and should never be trusted. As we've learned in the past, stereotypes and sweeping generalisations are not only always true, but always help nations, cultures, and businesses to succeed.

I'm glad to see this is the kind of open-mindedness in Sweden today.
11:54 September 26, 2009 by karex
I believe it must be a tactical move. Didn't I read previously somewhere that even if ALL the chinese automotive industries pooled their resources and the government pitched in they still wouldn't be able to come up with the necessary funds? So, unless they won on some big-time lottery, I find it difficult for them to be a serious contender.
15:07 September 26, 2009 by ppk
Nobody will buy Chinese Volvo, but they will get the technology and then Watch out...

By selling Volvo to China, Ford would sign the death sentence of American automotives.
19:01 September 26, 2009 by karex
@ppk

You are right there. They are only interested in getting the technology to apply to their own products and will run the company to the ground pronto, as they have done before.

So let's hope that they can't come up with the money!

However, the Volvo car isn't what it used to be either. Ford delivered the virus by saving costs on quality and dressing up the window in return. One of the most affected areas was surface treatment which has become very low quality. Reducing quality to save costs has also killed their own flagship - the Mustang. A Chinese purchase of Volvo Cars will be a death blow, but might be euthanasia...
16:01 September 27, 2009 by hjoian
think yourselves lucky that volvo may be sold at a good price,and not get the same fate as Britsh Rover!!! I expect there will still be a few people making BIG bucks from this sale,and as usual...screw the workers.....
16:51 September 27, 2009 by karex
Wasn't Rover bought by BMW?
21:01 September 27, 2009 by Leprehcaun
I wish BMW or Audi bought Volvo.. that would be perfect but they are obviously not interested.
10:08 September 28, 2009 by jackylee
What a pain for Swedes to sell volvo to Ford and then to China. Do we have any other althernatives? If there would be any second party being able financially to acquire Volvo, it could have been no chance for Geely. Anyone wants and can buy?

SAAB has a new lousy owner, with a big plan but no money. Where have they got their money in the end to close the deal? SAAB belongs to Sweden, still no one wants to buy. If Geely will have enough money, we will wait and see.
20:18 September 29, 2009 by spy
jackylee

On the one hand you are criticising a foreign company for trying to buy Volvo and then on the other hand you criticise a group of investors that include Scandinavians for trying to buy Saab. What do you suggest? Who would be suitable in your eyes?

Perhaps you should raid your piggy bank and buy one of the companies yourself - you sound like you have all the answers.
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