China's Geely Completes Takeover of Volvo from Ford

Chinese carmaker Zhejiang Geely Holding Group Co. (simply known as Geely) completed the purchase of Volvo Cars from Ford Motor Co. on Monday. According to Ford, Geely paid $1.3 billion in cash today and issued a $200 million note for the acquisition of the Swedish carmaker. The exact amount of the final sale price will be announced later this year when the final adjustments on Volvo's value are made, and could result in additional proceeds to Ford.

"Volvo is an excellent brand with a strong product line, and it has returned to profits after a successful restructuring. We are confident Volvo has a solid future under Geely's ownership," said Alan Mulally, Ford's president and CEO.

"At the same time, the sale of Volvo will allow us to sharpen our focus on the Ford brand around the world and continue to deliver on our One Ford plan serving our customers with the very best cars and trucks in the world."

Under the agreement, Ford will continue to cooperate with Volvo in several areas supplying powertrains, stampings and other vehicle components. It will also provide engineering support, information technology, access to tooling for common components, and other selected services for a transition period.

The Detroit automaker added that it has also come to an agreement with Geely on the use of intellectual property.

As previously announced, Stephen Odell, CEO of Volvo Car Corporation, will return to Ford as group vice president and Chairman and CEO of Ford Europe. Stuart Rowley, CFO of Volvo Cars, will also head back toFord as chief financial officer, Ford Europe.

"Volvo is a proud company with a talented and dedicated team of employees," said Odell. "I am especially pleased that with Ford's continued investment in recent years, Volvo is well positioned for the future with an exciting range of products that remain true to its core values – safety, quality, environmental responsibility and modern Scandinavian design."

Geely has announced that Volkswagen's former U.S. Chief Stefan Jacoby will replace Odell and become CEO of Volvo Car starting from this month.

China's Geely Updates its GE Rolls Royce Lookalike for the Beijing Auto Show

Volvo's new owner and China's top private automaker, Geely Automobile, has revealed a reworked version of its GE limousine prototype that drew attention last year for its... passing resemblance to the Rolls Royce Phantom.

For whatever reasons, Geely decided to modify the design of the 5.29 meter or about 17.3-foot long executive limo making it look more Chinese and less British.

The car now features a more bloated front end and a redesigned rear end while the Chinese maker also replaced the single throne at the rear with a more plebian seat bench for two.

The revised Geely GE limo will make its world debut at this month's Beijing Auto Show.

Geely Chairman Promises To Liberate Volvo from its Capitalist Owner / Oppressors

Zhejiang Geely Holding Group Chairman Li Shufu recently had this to say about Volvo and its $1.8 billion purchase from Ford Motor Company: "A tiger belongs to the forest. It belongs to the wild world and not confined in a zoo. We need to liberate this tiger." Anyone else see the irony?

According to Autonews, Li was referring to Volvo's dependence on Europe for production and Europe and North America for the most part of its sales.

Geely's chairman believes that this issue will be solved by building a factory in Beijing, China, that will make 300,000 Volvo cars a year, or about the same amount the automaker currently produces at its plants in Sweden and Belgium

Chairman Li has big plans for his Swedish brand, going on to say:

"I see China as one of the markets where Volvo could show us it has the opportunity to liberate itself and show the potential that is has. That is the rational for the deal. We want to stabilize the brand in the traditional markets of Europe and North America and, at the same time, develop our business in emerging markets including China."

The deal with FoMoCo should be wrapped up in the third quarter of 2010, but we'll have to wait to see how Chinese ownership actually affects the once-proud Meatball.

- By Phil Alex

Via: Autonews

Ford and Geely Hit "Snag" in Volvo Deal

Trouble's a-brewin' in the Ford/Geely Volvo sale, or so Zhejiang Geely Holding Group Chairman Li Shufu implies. The good news is it doesn't sound too serious.

Automotive News states that there may have been a "snag due to problems at Ford Motor Co."; regardless, Chairman Li says, "We're ready to seal the deal...If the deal fails, the problem is not on our side. We have not violated any part of the agreement."

The report goes on to say that Geely's plans for taking ownership of Volvo within the second quarter of 2010 have not changed. If that's the case, and the deal goes through, Chinese Geely will have Volvo safety, engineering, and design to spread throughout its portfolio.

Safe Chinese cars that look good? Maybe they're getting ready to take over the world after all.

- By Phil Alex

Via: Automotive News