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Geely confirms Volvo interest

TT/The Local · 8 Sep 2009, 14:14

Published: 08 Sep 2009 14:14 GMT+02:00

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Speaking at a press conference in Hong Kong, Geely Holding Group Co. CEO Gui Shengyue said China's largest privately owned auto maker wanted full ownership of Volvo Cars.

Shengyue added that Ford would announce within the next month whether it would move ahead with the sale of Volvo Cars.

"This has been on the cards for so long that it doesn't come as any surprise," Christer Karlsson, auto industry expert at Copenhagen Business School, told news agency TT.

Geely is one of a number of Chinese firms mentioned as potential buyers of Volvo Cars, particularly in the wake of the Chinese government's announcement that it would be investing heavily in the country's car industry.

Rumours have long flourished about Geely's interest in Volvo Cars.

"Geely is a typical manufacturer of mass production cars and it's conceivable that Geely is interested in adding a luxury brand to its range," said Karlsson.

But Karlsson said he was unsure as to whether Ford would consider releasing its technology to a Chinese company.

"Ford has previously been very dubious about that," he said.

Story continues below…

Volvo Group sold its car unit to Ford in 1999 but the relationship seemed destined to be short-lived after Ford announced at the end of last year that it was planning to sell the subsidiary.

Volvo Cars made a loss last year of some 13 billion kronor ($1.85 billion), followed by a loss for the fist six months of 2009 of almost 4 billion kronor.

TT/The Local (news@thelocal.se)

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Your comments about this article

15:46 September 8, 2009 by mdeklyn
First Saab now Volvo in danger of being, in part owned, by the Chinese and after a few years the Swedish assembly plants will be closed and moved to China with the loss of many Swedish jobs. And as for quality, even though Volvo and Saab don't have the greatest reputation for reliability it is nothing to what will happen when the Chinese take over.
16:34 September 8, 2009 by bjinger
Changing hand may in the best interest of Volv life.Geely does not represent poor quality, poor management and loss of jobs in Sweden, be optimistic for the future.
21:15 September 8, 2009 by hjbkh520
Thanks for Geely, more and more chinese can afford the cars. It has been said by many consumers that Geely cars have good quality and service irrespective of low price.

Geely is the real hope and pride of China's vehicle industry.

People do not need worry about the future of Volvo if it becomes the subsidiary of Geely, for Geely will make its effort to maintain or even promote Volvo's reputation.
21:27 September 8, 2009 by Leprehcaun
You're kidding, right? Sure it might be China's pride but it's an embarrassment for us.

"People do not need to worry", "will make its effort to maintain". That's BS. This is how it will go in reality. Swedes won't benefit from this, sales will go down in the western countries. No. Sales will plummet, they won't sell anything. Volvo will then, as Geely has promised, not move any jobs to China, it will simply expand in China, after which all profits stay in China and then, when Geely has copied all technology to their own cars volvo, which doesn't sell anymore will go bankrupt and will be put out of business and everyone will lose their jobs. Done deal.

If Swedes buys volvo profits will stay in Sweden and sales won't plummet, the technology won't be taken and the company will survive.

For the Chinese this is a great deal, for us it's the only worse thing than letting volvo go broke.
22:24 September 8, 2009 by iceberg

'CEO Gui Shengyue said China's largest auto maker...'

Geely is not even one of the top 10 auto makers in China.

'Geely is owned by the Chinese state...'

Geely was found by a farmer (Shufu Li) from Zhejiang Province 10 years ago. It is a private company.

'Geely is a typical manufacturer of mass production cars...'

Geely only produce less 0.5 million cars per year, which is less than 5% market share compared to 10 million cars sold in the country in 2008.

I am very impressed by the confidence of the author and 'the expert' when they are facing something they are not familiar with. They could have got all these numbers if they have spent 1 minutes to search in the Internet before they start to blah blah....
23:24 September 8, 2009 by BCR
There goes the neighbourhood!
23:29 September 8, 2009 by Tomitomi
There's a nice little consortium called Pheonix that'll take it off your hands for £10. Look it up!
02:08 September 9, 2009 by Greg in Canada
Kinda sad. I wouldn't say that Volvos or Saabs are the most common cars over here in Canada, but they do have a cult like fanatical following by people who like the cars. Can't imagine a Chinese Volvo or Saab. I just doesn't seem right, but that's the world nowadays.
08:14 September 9, 2009 by calebian22
Well said Leprecaun! No long term prosperity has come from allowing the Chinese access to western technology. Ask G.E. or any 300mm semiconductor producer anywhere in Europe. Oh wait, there are only a handful still remaining. You better ask them quickly!
10:32 September 9, 2009 by zagreb
Keep up Sweden's_!!

Put your heads and money together, buy and save Volvo, your national brand and pride!
12:50 September 9, 2009 by bjinger
The world is changing, so does the people. Volvo or whatever brands are simply business products. Market economy and competition are the values and banners that westerners held up.Geely is coming for bid, and help. If you Volvo or G.E can do well, why should Geely and other investers try for it.Business is business.
21:16 September 9, 2009 by Tomitomi
"after a few years the Swedish assembly plants will be closed and moved to China with the loss of many Swedish jobs".

If they just want the brand and tooling, why not wait until it goes bankrupt?

"And as for quality, even though Volvo and Saab don't have the greatest reputation for reliability it is nothing to what will happen when the Chinese take over".

Or maybe, just MAYBE, the Chinese will try to learn from volvo and improve their own processes? I doubt they will come in and rip everything up.
20:51 September 13, 2009 by spy
If you want a laugh then type in 'geely crash test' on you tube. 90% chance of death a low speed collision.
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