Geeley Buys Volvo - New York Times

[John von Colditz]

STOCKHOLM (Reuters) - Zhejiang Geely Holding Group, China's largest
private-run car maker, agreed on Sunday to buy Ford Motor's Volvo car
unit, the country's biggest overseas auto purchase.

Details of the deal will be provided at a news conference later on
Sunday, Volvo's spokesman Per-Ake Froberg said.

The takeover underscores China's arrival as a major force in the global
auto industry and ends nearly two years of talks with Geely over the
sale of Volvo -- the last sale from Ford's former premier group, which
also included Aston Martin, Jaguar and Land Rover.

The deal, which both sides aim to close in the coming months, will free
up cash for the number two U.S. automaker and enable it to focus on its
core Ford brand.

Geely, parent of Geely Automobile Holdings, was named by Ford as the
preferred bidder for its loss-making Swedish unit in October 2009.

It plans to keep the brand and operations -- including Volvo's
headquarters, production facility and research center -- in Sweden.

Geely chairman Li Shufu is already planning a factory in Beijing which
will make 300,000 Volvo branded cars, or as many Volvos for China as
are now made abroad for foreigners.

China raced past the United States to become the world's top auto
market last year, with sales surging 46 percent to a record 13.6
million units. It is keen to move into Western markets but has so far
lacked the technology and brand recognition to do so.

The Volvo deal should help the Chinese carmaker to get around some of
those obstacles more quickly.

 

[Tim McNamara]

The takeover underscores China's arrival as a major force in the global
auto industry

Hmmm. "Major force?" How many Volvos were sold last year?

 

[Tony]

Hmmm. "Major force?" How many Volvos were sold last year?

I think they are referring to the fact that China now makes more cars
than the US.

I can bet this will mean alot more Chinese components.

 

[James Sweet]

I think they are referring to the fact that China now makes more cars
than the US.

I can bet this will mean alot more Chinese components.

Indeed, RIP Volvo...

 

[Richard W Langbauer]

Indeed, RIP Volvo...

goodbye to Volvo cars -- back in1998. Volvo AG is still happy &
healthy. it is prehaps also forward thinking. cars aren't as much fun
as they once were. i am showing one nephew how to work on cars. "you
read the diagnostic code. look it up. purchase a new module. plug it
in." i once rebuilt a Weber 4 barrel. now that was fun.

 

[James Sweet]

goodbye to Volvo cars -- back in1998. Volvo AG is still happy &
healthy. it is prehaps also forward thinking. cars aren't as much fun
as they once were. i am showing one nephew how to work on cars. "you
read the diagnostic code. look it up. purchase a new module. plug it
in." i once rebuilt a Weber 4 barrel. now that was fun.

Newer cars aren't any less interesting, they're just different. I built
a modern ECU (Megasquirt) for my 240 from scratch and have repaired
quite a few Bosch ECUs and relays for mostly Volvos and VWs. Multimeter,
oscilloscope, and a soldering iron instead of screwdrivers and oily rags
but it can still be done. The mechanical bits haven't changed much
either, there's just more stuff jammed in there. I do prefer the 200 and
700 series cars, but I've done newer stuff too and it's not bad.

I cringe at the thought of Chinese parts in cars, I hate to generalize
against a whole country but I have seen *so* many examples of horrid
quality control, some parts excellent and some completely unacceptable,
you can bet I would never willingly step onto an aircraft made with
critical parts from China.

 

[Peter Huebner]

I cringe at the thought of Chinese parts in cars, I hate to generalize
against a whole country but I have seen *so* many examples of horrid
quality control, some parts excellent and some completely unacceptable,
you can bet I would never willingly step onto an aircraft made with
critical parts from China.

My feeling exactly. I was fully intending to buy one of the 2010 diesel
xc70ies, but I think that plan has just been scuttled - simply because I
fear that Chinese components will find their way into them, and on to
the spare parts shelves. Guess I'll be looking for a new marque to try.

Too bad, I've loved all my Volvos, they're such a joy to drive. If
somebody wants to go and shoot a few Ford execs for this deed, I'll
happily pay for the bullets.

-P.

 

[James Sweet]

My feeling exactly. I was fully intending to buy one of the 2010 diesel
xc70ies, but I think that plan has just been scuttled - simply because I
fear that Chinese components will find their way into them, and on to
the spare parts shelves. Guess I'll be looking for a new marque to try.

Too bad, I've loved all my Volvos, they're such a joy to drive. If
somebody wants to go and shoot a few Ford execs for this deed, I'll
happily pay for the bullets.

-P.

Well if you think about it, the success of the brand is not in Ford's
best interest once it is no longer theirs, it's just a competitor. It's
just unfortunate that Volvo sold out in the first place, I would have
thought Sweden would have done something about what is essentially their
entire auto industry, Volvo and Saab, being sold to foreign companies
who pretty much ran them into the ground.

 

[Leftie]

My feeling exactly. I was fully intending to buy one of the 2010 diesel
xc70ies, but I think that plan has just been scuttled - simply because I
fear that Chinese components will find their way into them, and on to
the spare parts shelves. Guess I'll be looking for a new marque to try.

Too bad, I've loved all my Volvos, they're such a joy to drive. If
somebody wants to go and shoot a few Ford execs for this deed, I'll
happily pay for the bullets.

-P.

It's probably as safe to buy a Volvo now as it was last week. The
cars (and presumably parts) for the West will still be made in Sweden -
for now. I wouldn't consider one in five years, however...

 

[Tony]

just unfortunate that Volvo sold out in the first place, I would have
thought Sweden would have done something about what is essentially their
entire auto industry, Volvo and Saab, being sold to foreign companies
who pretty much ran them into the ground.

Gov't bailouts are always wrong, just look at the banks, we still have
the same people and the same problems. Although I agree Volvo were
adding good value, it didn't fit in our capitalist system and they were
doing something wrong, not enough lying on advertising or something.

Gov't should only protect citizens and not companies, the latter must
evolve in a Darwinian way.

 

[Marc Amsterdam]

I cringe at the thought of Chinese parts in cars, I hate to generalize
against a whole country but I have seen *so* many examples of horrid
quality control, some parts excellent and some completely unacceptable,
you can bet I would never willingly step onto an aircraft made with
critical parts from China.

This is what a damn chinese wiring looms did to my pug 406.....

damn fuckers!

 

[James Sweet]

Gov't bailouts are always wrong, just look at the banks, we still have
the same people and the same problems. Although I agree Volvo were
adding good value, it didn't fit in our capitalist system and they were
doing something wrong, not enough lying on advertising or something.

Gov't should only protect citizens and not companies, the latter must
evolve in a Darwinian way.

I didn't say anything about government. I was hoping the other portions
of Volvo might reacquire them, or at least another Swedish company or a
group of entrepreneurs, I think they could have had a future, so long as
they were content to remain a relatively small and marginally profitable
maker.

If they didn't make enough money on their own, and didn't make enough
money for Ford, something is gonna give in order to boost the profit. I
suspect Geeley will pillage them of technology, and essentially run what
was Volvo into the ground and start slapping the name on all sorts of
crap cars.

 

[Roadie]

STOCKHOLM (Reuters) - Zhejiang Geely Holding Group, China's largest
private-run car maker, agreed on Sunday to buy Ford Motor's Volvo car
unit, the country's biggest overseas auto purchase.

Details of the deal will be provided at a news conference later on
Sunday, Volvo's spokesman Per-Ake Froberg said.

The takeover underscores China's arrival as a major force in the global
auto industry and ends nearly two years of talks with Geely over the
sale of Volvo -- the last sale from Ford's former premier group, which
also included Aston Martin, Jaguar and Land Rover.

The deal, which both sides aim to close in the coming months, will free
up cash for the number two U.S. automaker and enable it to focus on its
core Ford brand.

Geely, parent of Geely Automobile Holdings, was named by Ford as the
preferred bidder for its loss-making Swedish unit in October 2009.

It plans to keep the brand and operations -- including Volvo's
headquarters, production facility and research center -- in Sweden.

Geely chairman Li Shufu is already planning a factory in Beijing which
will make 300,000 Volvo branded cars, or as many Volvos for China as
are now made abroad for foreigners.

China raced past the United States to become the world's top auto
market last year, with sales surging 46 percent to a record 13.6
million units. It is keen to move into Western markets but has so far
lacked the technology and brand recognition to do so.

The Volvo deal should help the Chinese carmaker to get around some of
those obstacles more quickly.

Finally, the Volvo brand gets an owner with some deep pockets. Geely
will effectively double Volvo unit sales with that new plant. I would
hope for some interesting new designs as the Geely ownership takes
hold. I doubt that Geely would take the shortsighted view of simply
slapping the Volvo brand on entry level cars.

 

[Tony]

I didn't say anything about government. I was hoping the other portions
of Volvo might reacquire them, or at least another Swedish company or a
group of entrepreneurs, I think they could have had a future, so long as
they were content to remain a relatively small and marginally profitable
maker.

I have worked in a good quality business, but been made redundant
several times, and experienced several busts. I have not decided if its
actually sustainable, one reason I think is people do not have the
information and are easily swayed by advertising lies.

On thing is key, you have to build your brand and stay small, don't get
greedy and don't believe the saying 'expand or die', markets are not
limitless, its an impossible dream. To many small quality/niche
companies get attracted by big volumes in cost competition markets, end
up selling themselves short or speculating on volume to get the sales
and buying power, managers end up believing their own BS. I am an
Engineer and have done business qualifications as well as general
industrial management training. So much of what I was taught in the
last 2 or 3 decades I now consider to be wrong. Of course business is
still practising this, especially the Chinese. (I'm only talking about
business, not engineering).

If they didn't make enough money on their own, and didn't make enough
money for Ford, something is gonna give in order to boost the profit. I
suspect Geeley will pillage them of technology, and essentially run what
was Volvo into the ground and start slapping the name on all sorts of
crap cars.

Probably, but I can't help think that somebody somewhere knows what is
coming and they are giving the Chinese a rope to hang themselves with,
unfortunately all the ropes are connected.

 

[Roadie]

I have worked in a good quality business, but been made redundant
several times, and experienced several busts.  I have not decided if its
actually sustainable, one reason I think is people do not have the
information and are easily swayed by advertising lies.

On thing is key, you have to build your brand and stay small, don't get
greedy and don't believe the saying 'expand or die', markets are not
limitless, its an impossible dream.  To many small quality/niche
companies get attracted by big volumes in cost competition markets, end
up selling themselves short or speculating on volume to get the sales
and buying power, managers end up believing their own BS.  I am an
Engineer and have done business qualifications as well as general
industrial management training.  So much of what I was taught in the
last 2 or 3 decades I now consider to be wrong.  Of course business is
still practising this, especially the Chinese. (I'm only talking about
business, not engineering).


Probably, but I can't help think that somebody somewhere knows what is
coming and they are giving the Chinese a rope to hang themselves with,
unfortunately all the ropes are connected.

It's not possible to remain small in the automotive business and have
a hope of building a brand let alone stay in business. The capital
needs are simply too intensive and the competition is too large. None
of the recognized car brands still in business today are small.

 

[Tim McNamara]

It's not possible to remain small in the automotive business and have
a hope of building a brand let alone stay in business. The capital
needs are simply too intensive and the competition is too large.
None of the recognized car brands still in business today are small.

Aston Martin? Ferrari? Bugatti? Lamborghini? Even Volkswagen is only
2% of the US market and they are comparatively huge in this company.

 

[Roadie]

Aston Martin?  Ferrari?  Bugatti?  Lamborghini?  Even Volkswagen is only
2% of the US market and they are comparatively huge in this company.

I was really talking about companies Geely, Mercedes and Volvo who
build large numbers of cars for the masses.