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February 13, 2012
Geely secures Volvo purchase finance
Published: 10 Mar 10 11:41 CET | Double click on a word to get a translation
Online: http://www.thelocal.se/25450/20100310/
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.
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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.
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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 !!
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.
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.
I am very afraid that the sale of Volvo is being bad when Geely bought it even if the cars are made in Sweden.
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