Volvo being sold to China

[ALS]

BEIJING, June 18 (UPI) -- Geely Automobile Holdings in China has agreed to a tentative deal to purchase Volvo Cars from Ford Motor Co., the China Daily reported Thursday.

The paper cited other media reports which include Geely's plans to produce a new Volvo in the Guangzhou Province.

The Local, a Swedish newspaper in Stockholm, reported that Geely intended to build the XC90 in China and position the company for a move toward a global market.

A Volvo spokeswoman Maria Bohlin told the Swedish news agency Tidningarnas Telegrambyra that, "Ford is in charge of the sale. We don't know anything here."

Ford bought Volvo for $6.9 billion, but will likely sell the company for about $3 billion, the China Daily said.

"It's the right time for Chinese firms to make overseas acquisition during the slowdown in the economy," said Jia Xinguang, an analyst with the Chinese National Automotive Industry Consulting and Development Corp.

UPI Ford sells Volvo to China

 

[Johnny]

Oh great, Chinese Volvo's.

 

[sunfire]

GM has way too many brands. If Ford sells Volvo that will leave them with 3. Why are they selling one of their premium brands? That pretty much leaves them with Lincoln.

 

[MariusVT]

First Hummer and now Volvo... Hopefully when the government gets out of GM & Chrysler they don't allow the chinese to buy that stake too. Chinese are taking over the automarket one failing maker at a time.

 

[Johnny]

Originally Posted By: sunfire
GM has way too many brands. If Ford sells Volvo that will leave them with 3. Why are they selling one of their premium brands? That pretty much leaves them with Lincoln.


I say good for Ford. Go back to what the company use to be back in the good old days. FoMoCo.

 

[JHZR2]

At least saab seems to be set up to be purchased by a Swedish company...

"you've got to take volvo off your list"

 

[eljefino]

Smart of them. The volvo name will outsell Chery any day.

Who, seriously, do we think has capital and patience?

Snobbish me thinks Volvo's a former shell of itself and expired when they quit making the traditional boxy RWD series. Never got excited over the soccer mom offerings of the last dozen years. If any consolation to anyone the brand was already in decline (for me).

 

[PT1]

LOL......Volvo? Who cares? Just another Euro brand that was picked up during the cash bubble. Good riddance. Volvo's are not now and never were Fords.

Let China have them...but the downside is that Geeley will use the dealer network here to peddle their garbage cars very soon. Just as soon as they make one that doesn't fall apart in a collision.

 

[PT1]

Originally Posted By: JHZR2

"you've got to take volvo off your list"


Why? Volvo was never ON my list......

Try this mental test...look at a picture of a new Mustang with all the cool wheels and stripes....then look at a Volvo...Ok those of you who prefer the Volvo please pack your bags for China.

 

[StevieC]

IMO, Volvo's are very ugly vehicles... But they are rock-solid reliable. (The old ones anyways).

 

[JHZR2]

Cool wheels and stripes? Yuck.


At one time volvo was a great example of sound automotive engineering, safety and longevity (which I cannot say about any mustang model, sorry). I won't hold my breath for a Chinese company to revive the same beyond what they can steal from others.

The Chinese may be graduating far more engineers than we do, but I haven't seen it benefit in any practical form the junk that they send us at "competitive" price points.

 

[Kruse]

Originally Posted By: PT1
Volvo's are not now and never were Fords.



True, but Ford did steal a bunch of technology from them and put a Ford badge on the products that were purchased from Volvo. My mom has a Ford 500 and a lot of things in that car are from Volvo.
It seems like Ford lost a lot of money by purchasing it for $6.9 billion and selling it for $3 billion, but it saved them a lot of engineering costs.

However, my feelings is a "good riddance". Let them get back to FoMoCo products.

 

[mormit]

I don't like the idea of Volvo being owned by a Chinese company but depending on how this is handled, could be very good for Volvo in the long run. Access to the Chinese market? It could be like opening a car plant in the US right around 1950.

Or they could try building Volvos at "China price" and sourcing parts from Chinese companies. That would be awful.

 

[Propflux01]

Originally Posted By: mormit

Or they could try building Volvos at "China price" and sourcing parts from Chinese companies. That would be awful.


DING!!!

 

[rjundi]

Originally Posted By: sunfire
GM has way too many brands. If Ford sells Volvo that will leave them with 3. Why are they selling one of their premium brands? That pretty much leaves them with Lincoln.


You really think Volvo is a "premium" brand like Lexus, BMW, MB or Acura(sort of)?

 

[2002 Maxima SE]

Like Jaguar and Land Rover, I don't think Ford's "Premium Automotive Group" was ever profitable. Sure, they got some great car structures from Volvo and a 5 cylinder engine, but that's about it. I hate to see them sold to the Chinese as well...reliability will sink even further...but, this will be good for Ford in the long run.

 

[Tosh]

Originally Posted By: mormit
Or they could try building Volvos at "China price" and sourcing parts from Chinese companies. That would be awful.

Awful interesting! I'm sure I would be amused with the marketing spin/challenge behind peddling Chinese Volvos in US and Europe.

 

[OVERKILL]

Originally Posted By: JHZR2
Cool wheels and stripes? Yuck.


At one time volvo was a great example of sound automotive engineering, safety and longevity (which I cannot say about any mustang model, sorry). I won't hold my breath for a Chinese company to revive the same beyond what they can steal from others.

The Chinese may be graduating far more engineers than we do, but I haven't seen it benefit in any practical form the junk that they send us at "competitive" price points.


The Fox bodies had the longevity.... Now the safety? Not a chance! LOL!

 

[PT1]

Originally Posted By: JHZR2

At one time volvo was a great example of sound automotive engineering, safety and longevity (which I cannot say about any mustang model, sorry). I won't hold my breath for a Chinese company to revive the same beyond what they can steal from others.



Yeah true...but the Mustang is a symbol of America, muscle cars, the 1960's automotive era....when gas was $.25 a gallon...basically "The good old days" revisited. It is a symbol of what America was and could be some day if the idiots that like Volvo's would go back to Europe where they belong. Let the Chinese hack the bejeezus out of that company. Like I said before...who cares?

Volvo's are for College Professors and socially disassociated geek techo nerds. Mustangs are solely for the cool and retro machine heads that need horsepower coupled to fun enhanced by torque and veiled in a cloud of tire smoke and exhaust.

 

[Vizzy]

This is an instant FAIL as far as I can tell.

The Chinese have a terrible reputation for car safety engineering and the typical Volvo owner or buyer is way too savvy to continue to stay with a company that is headed by the Chinese.

The only way this can work is if the Chinese fund Volvo and keep their hands off the entire product development and implementation process. But that ain't gunna happen!!!!!