• Sweden edition

Geely secures Volvo purchase finance

Published: 10 Mar 2010 11:41 GMT+01:00
Updated: 10 Mar 2010 11:41 GMT+01:00

Chinese car maker Zheijiang Geely Holding Group is a step closer to becoming the new owner of Swedish firm Volvo Cars after announcing that it had secured the 15 billion kronor ($2.1 billion) in required financing, a report said on Wednesday.

"Financing for the Volvo deal was concluded in recent days," a source told

Swedish financial daily Dagens Industri (DI).

The funds are now in Geely's bank account, and Ford has witnessed and approved documentation, according to DI's source.

It could still take time for the deal to be finalised as the parties need to go over all the relevant documents and make sure they are in line with legislation in China, Sweden and the United States, DI said.

"This is a very complex and time-consuming process," DI's source said, adding that approvals were still needed from some of the relevant authorities.

The backers of the deal are reported to be Chinese financial institutions and regional authorities which have secured the financially strained Chinese firm's purchase of Volvo Cars.

Ford announced in late 2009 it had agreed terms to sell its Swedish subsidiary Volvo Cars to Geely for a reported $2 billion.

If completed, the deal will bring to an end Ford's decade-long association with the Swedish brand.

While Geely has denied that production will be moved from Sweden to China, it has previously unveiled plans to establish a factory outside of Beijing with a production capacity of 300,000 cars.

Nonetheless, trade union leaders in Sweden have expressed fears that the deal with Geely will mean cuts at Volvo Cars, which has 22,000 employees worldwide, including 16,000 in the Scandinavian country.

An agreement for Geely's takeover of Volvo Cars is due to be undersigned during March, and the actual takeover is anticipated to be completed at some point before the end of June.

TT/AFP/The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

12:44 March 10, 2010 by BIL101
well done! Geely, keep going ahead!
13:12 March 10, 2010 by Eagle63

Luckily Saab didn't end up in Chinese (or worse) hands... Can't wait for the all-new Spyker-Saab 9-3 in a year or two !!
17:12 March 10, 2010 by Volvo D
IF this deal goes through it will be the worst days in Volvo's history. WHAT CAN GEELY BRING TO THE TABLE?! This company has NO credibility. Their products are unsafe, unreliable, and have no quality or environmental care...the COMPLETE OPPOSITE of Volvo products, and now these could be the guys calling the shots? THEY ALSO have NO experience in running an international company, let alone a European international company. The Chinese automakers do not inovate, so they have no use to keep expensive Volvo technicians or unions. The Swedish automomile industry cant be saved by small players like Spyker-Saab alone. Volvo needs to remain Swedish. Chinese ownership will water down the brand, production will eventually be moved out of Sweden altogether, and Geely will have succsesfully raped what was once a proud and brand rich company. Shame on you Ford, you Volvo!
19:54 March 10, 2010 by square
Volvo D, although i can't say i know full details i feel your comments are spot on. Having a comapny whose focus is on cost down taking over a culture of safety at all costs does not seem like a winning combination. Only time will tell i suppose.
15:31 March 11, 2010 by karex
@square and Volvo D

I also agree. However, if your prediction turns out to be correct, poor quality cannot be attributed solely on the prospective new owners - they would just be accelerating what Ford began 10 years ago. The Volvo automobile has not been a real Volvo ever since Ford bought them. It's been just a shell for quite a while.
04:04 March 12, 2010 by porksteak
Very disappointing.
16:08 March 12, 2010 by Luke35711
If this is the new reality, we ought to work constructively to make the best of it! Being negative from the start won't help anybody.
01:41 March 13, 2010 by zhqwang
I wish that Sweden people buy Volvo car for long because you love it whenever. I think that you can see the beautiful future for Volvo car because you don't underestimate the abibility of chinese people. Do you know the president of Geely predicted that Geely bought when Ford bought Volvo about 10 years ago.
20:30 March 14, 2010 by E J
Thgat is really very SAD for us Volvo admirers in thge world. I own a 1966 Amazon 121 with 71,600 original kilometers and have had others newer. I really hope Geely will keep the brand at its original level of reliability and security, but frankly have doubts. From Lima, Perù, regards for averyone.
20:16 March 15, 2010 by Marvino
My dear zhqwang:

We all admire the ability of chinese people. We only have doubts about what the Chinese Government will do if Volvo ends up to be a Chinese enterprise. Geely says a lot of things about what they intend to do with Volvo, and dream a lot about their glory and future. But I wonder whether they understand that they will never really call the shots in any major decision, because the Government is backing their loan to buy Volvo. They stated they will keep the management and production structure in Sweden. But will they really be able to keep their promise when the bosses in Beijing tells them that it is in CHINA's people interest to replace the Swedish management with Chinese experts in car production ?

Think about it, and respond if you want. I am curious to hear what you have to say.
00:18 March 16, 2010 by zhqwang
Goverment of China supported the priate companies for long because they employ at least .25billion persons in their companies. The private companies assumes sole responsibility for its profits, the goverment don't interven them .The leaders of China know the private companies are good ,and very competitive, and they also knew that the state-owned companies are not bad but poor competitive. But the leaders are more clever than me, may than you. Then pay more attention to overall situation. Do you know that the population of a big city are more than your country, this are practical China.There are many policy to protect the priate comanies in my country.

I am very afraid that the sale of Volvo is being bad when Geely bought it even if the cars are made in Sweden.
05:37 March 16, 2010 by Marvino
zhqwang, I frankly fail to understand what the size of big Chinese cities has to do with the sale of Volvo. Can you explain ?
08:16 March 16, 2010 by zhqwang
it is very difficult for me to upload.

Afternoon, I printed too much, but upload function don't work. What you saw is my simply version. Just now ,I printed some but don't upload owing to poor upload.

you can contact me by zhqwang"at"hotmail.com
Today's headlines
Sponsored Article
On the move: Sweden's shifting mobility trends
House keys: Shutterstock.

On the move: Sweden's shifting mobility trends

Finding somewhere to live when you move to Sweden is a challenge. With changes afoot The Local caught up with an expert from letting agency Residensportalen to find out in what direction the market is going, and how Google Glasses may just help you find your dream home. READ () »

The Local List
Ten most disgusting Swedish foods
Salty liquorice, anyone? Photo: Anders Wiklund/TT

Ten most disgusting Swedish foods

Swedish food is, of course, a matter of taste. But it's mostly disgusting. Our loyal followers on Twitter and Facebook shared what they thought were the worst of them all. READ () »

Sweden wants cruise missiles 'for defence'
Defence Minister Karin Enström. File photo: TT

Sweden wants cruise missiles 'for defence'

The Swedish government has announced plans to beef up its defence forces by fitting its fleet of Gripen fighter jets with long-range cruise missiles. READ () »

Swede of the Week
Sweden's oldest would-be MP: 'They promised I wouldn't get in'
Swedes vote in the 2010 elections. File photo: Dan Hansson/TT

Sweden's oldest would-be MP: 'They promised I wouldn't get in'

Gösta Arvedson, 89, is the oldest Riksdag candidate in Sweden, but our Swede of the Week explains that the Liberal Party (Folkpartiet) had to make some unusual promises for him to put his name forward. READ () »

Elections 2014
Most Swedes lack info ahead of EU vote
The Green Party is one of only two parties devoting their websites to the EU elections. Here campaign manager Emma Rung presents the party's posters. Photo: Leif R Jansson/TT

Most Swedes lack info ahead of EU vote

The majority of Swedes feel the country's political parties are not doing enough to inform them about the upcoming European Parliament elections. Only two of the eight parties have dedicated their homepages to the May 25th polls. READ () »

Fatal Norrköping Brawl
Local church tried to stop Norrköping murders
Swedish police on the scene following Monday's fatal brawl. File: TT

Local church tried to stop Norrköping murders

The Syrian-Orthodox Church in Ektorp had tried to quell tensions between two rival families just hours before bad blood spilled into a massive brawl and two brothers lost their lives. READ () »

JobTalk Sweden
'Foreigners don't need to show banks Swedish ID'
The bridge that connects Sweden to the European continent. File: L.E. Daniel Larsson/Flickr

'Foreigners don't need to show banks Swedish ID'

The Swedish agency that helps Europeans fight impediments to the EU principle of free movement has revealed an increase in complaints, including one from a foreign citizen unable to open a bank account in Sweden. READ () »

Eurovision 2014
Pig heart shatters in Sweden's Eurovision clip
Sanna Nielsen in the new clip. Photo: YouTube (screenshot)

Pig heart shatters in Sweden's Eurovision clip

Sweden's Eurovision hopeful Sanna Nielsen released the official video for the song Undo on Wednesday, a clip featuring leather, slow motion destruction, and a frozen pig's heart and some violence. READ () »

Software robot pinches Swedish flats in seconds
Swedish apartments. File: The Local

Software robot pinches Swedish flats in seconds

A Swedish landlord suspects that a property fixer has set up a software robot to sign up for new flats on the market within seconds, and is charging house hunters to use the service. READ () »

Swedish zoo fire 'kills only the spiders'
Photo: Johan Nilsson/TT

Swedish zoo fire 'kills only the spiders'

Twenty-five fire fighters were on hand on Wednesday night when a fire broke out in a southern Sweden animal park. The vast majority of the animals were unharmed, but the cluster of spiders wasn't so lucky. READ () »

Sponsored Article
On the move: Sweden's shifting mobility trends
People-watching April 23
Inside the 850-year-old king's coffin
Sponsored: South-eastern Sweden offers Öland beaches and more
Swedish underwear shop puts staff in front of the camera
IN PICTURES: The Local's Property of the Week - Täby
Sponsored: India+Sweden Week - India Unlimited
Sponsored: India+Sweden Week - A film, food, and finance feast
University applications rocket to record high
People-watching April 18-20
Kids in Victorian garb mark Swedish Easter
Swedish MP ordered chemtrail probe
Swedish supermarket Ica pulls contested Easter commercial off air
Swedish royals set baptism date for princess
People-watching April 16
Who's the prime minister's heir?
Alfie Atkins
Are children's books the key to families integrating in Sweden?
'Sweden Dem protests cater to party's martyr image'
'Swedish research grants were fantastic, but now it's like Australia'
Only in Sweden: The ten problems you'd never encounter elsewhere
Swedes stopped to take my picture, but didn't look me in the eyes
Business & Money
A swipe of the hand replaced cash and cards in Lund
Video: Oliver Gee finds out how to embrace The Swedish Hug
Abba duo hints at reunion
Flash mobs hug it out across Sweden
Stockholm School of Economics
Sponsored Article
Why a bachelor's degree is no longer enough
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 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

Blog Update: The Diplomatic Dispatch

28 October 15:16

The Green Growth Group Summit »

"Today on the 28 October in Brussels, a large group of key EU Ministers and business people, including UK Secretary of State for Energy and Climate Change Edward Davey, and Swedish Environment Minister Lena Ek, will meet to discuss green growth. They all have a stake in resolving a challenge which, although it is crucial..." READ »

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: