Geely comments raise doubts over Volvo buy
Published: 13 Apr 10 15:10 CET | Print version
Online: http://www.thelocal.se/26054/20100413/
Geely CEO Gui Sengyue has once again caused ripples of concern in Sweden after comments indicating a less independent role for Volvo within the Chinese firm.
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Geely's produces cars through its Geely Automobile subsidiary, which is 51 percent controlled by Li Shufu. The rest of the shares are listed on the Hong Kong stock exchange. Shufu's comments have hitherto indicated that the two firms should be siblings within the the group.
But when Geely Automobile presented its accounts for 2009 at a press conference in Hong Kong on Tuesday, the car company's CEO Gui Shengyue painted a different picture. According to Shengyue, Geely's parent company plans to incorporate Volvo Cars into Geely Automobile.
"It will definitely not take a long time. Maybe three years," Shengyue said according to Sveriges Radio's Ekot news programme.
This is not the first time that Geely representatives have made apparently conflicting comments and unions have demanded an explanation.
"It makes me wonder. They do not seem to be working together within Geely," said union representative Magnus Sundemo.
Sundemo has now forwarded a question to one of Geely's representatives seeking clarification over the issue.
"They must of course clarify this so that we understand how they work. Internal communication does not seem to be their strong suit," said Sundemo.
Geely Holdings Swedish spokesman Anders Fogel considers that Shengyue's statements may be an expression of his own personal dreams. The parent company has no plans to merge the two companies into one car making company, Fogel told Ekot.
"The plan remains to run Volvo as an independent, stand-alone company directly under the parent company," said Fogel to news agency TT.
Fogel has joined the unions in asking for an explanation over how Shengyue views the takeover of Volvo.
What do you think? Leave your comment below.
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Well, now there will definately be somthing to complain about. The Auto Industry will be gone here completely in probably less than 5 years. Which means the supplier base will also.
Now there are real Gangsters running Saab and Volvo. How can people that manipulate thier currency be trusted?
Not surprised, but then again Big Business is Ruthless and only the strong survive.
Fairly obvious from the word go,despite the phoney promises which only a fool would have believed,both with regard to Volvo and Saab.
No doubt the famous marques will survive,...but within five years the Swedish input and income from them will be virtually zilch.
As john says big biz is ruthless and no way will the Chinese and Ruskies intend to pay Swedish labour rates and overheads.
Fika anyone?
I sometimes wonder how naive most of us swedes are, including businessmen,....or maybe swedes are just more stupid than most, although we believe we are so clever!
I so tired of this, diskutera this, diskutera that and then add to that all this gender stuff...business is business...whether you are from the west or east, a man or a woman....business is all about maximising profit according to how you define it.
We swedes must grow up and realize thet there is a world outside our borders and that our way isn't always the best way!
Will yo all join me in the movement: Grow up Sweden!
I'm happy to have a fika with you Jack Sprat, so that we can discuss this and agree on something completely inefficient!
And I think too many people just wish to see Volvo fall and blame Geely or China. Otherwise this can not be a news and receive comments.
I think most people in Sweden are well educated.So, Don't Ever Follow What the Media Says, they just want to make a sale.
In a big picture, no matter what the end is, this deal gives both Volvo and Geely a chance to success, this is why it is a good deal. The fate of Volvo is not hold by Chinese.
Jack Spat is totally right: Fika, the Swedish work ethic, will kill both SAAB and Volvo.
@Bhgtiger: Your too blinded by optimism. You are correct that Sweden is well educated. But that is changing, just ask my son how is repeating a grade in American school because the finest Swedish schools didn't offer the basics of the lowest American education.
Poor, poor Sweden.
It goes all the way up. My friend in Stockholm studied to be a legitimerad sjuksköterska, 4 years of university. He has to spend a year studying in the US, to reach RN status, because of the medical lite curriculum now that he has returned to the States.
Selling Volvo to Geely is idiotic ...
That aside, to those who say the Swedish car industry is doomed, don't look now, but it is almost dead already: All this stupid Spyker deal does for SAAB (yes, I like the old spelling. Sorry!) is postpone the inevitable. Someone should have given a "Do Not Resuscitate" order long ago. It does, however, buy those employees some time to look for work!
As for Volvo, it makes me cry. The government should be summarily thrown out of office for allowing one of Sweden's few remaining industrial "Crown Jewels" slip out of Scandinavian hands. Shame. You will deserve the same fiscal servitude that has befallen Great Brittan. Sweden soon too will become a "service economy."
China and India are experiencing high economic growth. And Good Luck to them. But that growth has been achieved in a big way by our giving them access to our Western markets.
the long and the short of it is that these two countries are getting into the position of being able to buy up major parts of our economies.
I applaud poster #9's comment.