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Cross-party support for Volvo deal

Published: 23 Dec 2009 15:03 GMT+01:00
Updated: 23 Dec 2009 15:03 GMT+01:00

Enterprise Minster Maud Olofsson was joined by leading Social Democrats on Wednesday in welcoming a deal over the sale of Volvo Cars to China's Geely. But labour group Unionen expressed concern for the future of the Swedish marque.

Maud Olofsson said she was pleased that Ford had moved forward with its plans to seal a deal with Geely but stressed that a number of issues in the "complicated sale process" were as yet unresolved.

"Much remains; this is another step in the process that will lead to a final sale," she said.

There remains much to be done on the Chinese side," she added.

Sweden's largest party, the opposition Social Democrats, welcomed Geely's imminent acquisition of Volvo Cars.

"This offers major opportunities for a broader industrial solution and represents an opening into the large and growing Chinese market," said economic policy spokesman Thomas Eneroth in a statement, calling for fast action on loans and loan guarantees.

Eneroth's optimism was however not shared by trade union group Unionen.

"Geely's intentions with this deal are still unclear, and that worries me. And even if our car sales do now rise again, the fact remains that Volvo Cars is a loss-making company. How Geely wants to solve that, we just don't know," said Sören Carlsson, chairman of the Unionen branch at Volvo Cars in Gothenburg.

Several of the trade union groups active within Volvo Cars sat in talks to discuss the deal on Wednesday afternoon.

TT/The Local (news@thelocal.se)

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Your comments about this article

03:50 December 24, 2009 by falcon
The Chinese will move volvo assembly to China - Guaranteed! With cheap labor, it is inevitable. What are they thinking? Good for China, BAD for Sweden.
09:28 December 24, 2009 by bjinger
What is Volvo now-, thumbs down by the market.

People should feel sorry for its past performance, and hope for the best. Volvo's future is bright. If Geely dosn't come in time, that'll be the worst for Sweden, for Volvo, and for the workers.

Volvos workers now have peace in Christmas eve.
21:00 December 24, 2009 by 2394040
The thing you always have to keep in mind about China is that it has an entirely different world view than Sweden. China has never been what might be considered a free society, and it's most unlikely they ever will. History teaches that those in power never give up that power easily; it generally has to be taken from them by force. The joke is that once power is destroyed, it always re-creates itself eventually. It has always had autocratic government; some more repressive than others. When China's rulers decide what is good for the people, that is the end of the argument. Anyone in their right mind would have to be extremely wary of any dealings with China. If China decides that Volvo will be built in China, that is the end of the argument. I cannot imagine any scenario where Sweden could prevent this happening. I think the very best that could happen once China is in control is that some of the company might be allowed to remain in Sweden. China does not tolerate labor unions, period. So the Volvo workers (if the company remains) can expect a lowering of their standard of living, plus they can forget about anything remotely resembling job security.
22:57 December 24, 2009 by Taxalien
I agree with 2394040. But it would be politically incorrect to report on this in Sweden because it would strike at the heart of everyone in all the establishments of Sweden. The media, because they have failed to enlighten the population what it means for decades to live in an oppressive parlamentarian dictatorship where it is considered normal to tax everyone 50% and spend 67% of that revenue on transferrals (ie. state aid without any demand for a service in return), the political establishment for they are all implicitely or explicitely socialists who want to keep the status quo, make it worse or are incabable of either analysing the problem or doing anything about it. The corporate establishment, for having agreed to reestablish the guild system (unions and collective pay agreements) as a means to shut out competition while submitting to pay deals which inevitably lead to the strangulation of worker mobility and mass unemployment in sectors of the population that are forced into early retirement or perpetual unemployment. The unions for having deceaved the interests of the workers they are meant to represent. Anywhere you look the problem is that they have all coopted and cooperated to bring the country to its knees, so that it now has to go begging to a totalitarian dictatorship to gain funding to keep the charade going for another couple of months, so that an election can be held where the politicans can fight for the only thing that interests them, to keep their cosy jobs for they have no market value outside a socialist political system.
04:26 December 25, 2009 by ups
I do not agree with 2394040.If you search the Chinese website like 163.com using Google Transle. you will find that many Chinese people donnot want Volvo to be purchased by Grelly.

They donot want to lose the future of the goble brand--aslo one of the pride of Sweden.

However ,I think the future of Car is in China.Not only because of the more than 2trillion US.dollar Foreign Exchange Reserve,but also the fast developing market.

What China lacking most now is the advatange Technology,so I think Volvo will has a good future.
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