The Chinese “home grown” automaker Geely had been widely rumored to be highly interested in snapping up Volvo or Saab. Or both. They either have lost interest. Or they employ the stratagem usual in a Chinese market: Shout “Tai gui le!” (too expensive), make an indignant face, and walk away. If they run after you, the next round of haggling ensues.
Geely “has not submitted, and has no plans to submit, any bids concerning the takeovers of ‘Volvo’ or ‘Saab’ as stated in recent press articles,” said Geely in a notice to the Hong Kong stock exchange, and their stock price promptly jumped 13.6 percent, Gasgoo writes. It doesn’t mean they were not or are not interested. They just didn’t hand in a—formal—bid. They sure had been talking.
After having made three “inspection trips,” to Sweden’s Volvo, Geely’s top management decided that the brand is not worth what they are asking for.
Now suddenly, Geely says the visits were part of an innocent annual overseas “tour of study” that can help it learn more of the market. And that Geely will not spend a huge sum of money to buy either Volvo or Saab, unless they go bankrupt and sell cheap.
So far, Geely’s chairman, Li Shufu, grumbled that neither Volvo nor Saab are cheap deals. He shouldn’t worry. They’ll get cheaper.
Interesting tidbit: Geely revealed that their top management had a discussion about (not) acquiring Volvo. But they supposedly have not discussed Saab yet. After all, Saab already has gone bankrupt. And possibly has come running after Geely.
Can’t these superfluous brands just die in peace?! Given the global automotive slowdown, there must be 20 brands that have no place in the current market. Why not let them die? The current owners must realize that by selling them, the new owners will be investing tons of money to improve the product, thus competing more strongly with the former owners’ brands. makes no sense.
If GM can give Saab away, they must do it quickly. Surrender all that goes with it and back away. Better yet, turn their backs and run like hell. Saab is going nowhere extremely fast.
Saab will only get cheaper as the desperation increases, but if the economy improves, they might miss their chance to get Volvo. Or not, if the Visteon black hole pulls Ford in.
Geely isn’t a company that needs to actually BUY a company to obtain its technology. They can easily replicate any SAAB or Volvo product….just as they’ve done with other companies’ cars.
Just ask Chevy, BMW, and Rolls Royce for that matter.
It’s kind of like asking the guy making fake Rolex’s if he’d like to buy the company.
Having SAAB and Volvo out of business will just make it easier for them since there will be no one to complain.
# Lokkii :
May 14th, 2009 at 8:42 am
It’s kind of like asking the guy making fake Rolex’s if he’d like to buy the company.
Having SAAB and Volvo out of business will just make it easier for them since there will be no one to complain.
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But then why would anyone copy from a dead company?
People make fake Rolex because Rolex is still there. Who would make or buy a fake watch whose brand die long ago?
People make fake Rolex because Rolex is still there. Who would make or buy a fake watch whose brand die long ago?
If you are good at making fake Rolexes, what would you do if you could pick up the Rolex brand for real, real cheap?
The Chinese car industry needs an accepted foreign brand with homologated and crash tested cars for quick foreign market penetration. It’s that simple.
Dead on Bertel. As bad/overpriced as Volvo and Saab may be they would be a hell of a lot easier to market and sell in the western market than a Geely. Think of what Lenovo did with IBM and laptops.
If you are good at making fake Rolexes, what would you do if you could pick up the Rolex brand for real, real cheap?
I’d snap it on the spot.
Yes the other argument. And I bet the UE is tougher in the homologation area.
I think you may have indeed hit it Bertel….
Cheap legitimatcy AND a dealer network. I’m sure it’s tempting them, when you look at it that way.
Looks like they need the styling help, and probably the safety help too. What an ugly grill on that beast.
there are major hurdles in marketing any kinda of chinese car no matter how good it is
if they make a bloody full size sedan that does 50mpg and does 0-60 in 5 secs and sounds like a Ferrari you will still get the detractors
right now India makes some fairly reasonable SUV products that are well priced and good vehicles yet there is marked resistance in overcoming market perception
India is not perceived to be a an credible manufacturing and engineering centre. No amount of advertising will reverse this.
China faces the same issue. I would suspect that there would even be significant resistance of Western markets to take to Chinese made Buicks or BMWs or Mercedes Benzs… we accept grudgingly that our laptops and high end prestige consumer items like LCD TVs, hifi components come from China… eg. “oh my Sony Bravia 42′ is made in China. They all are these days. Bummer. But it’s still ok.”
But I doubt this will wash on cars since they are more a reflection of ourselves that mere consumer electronics.
It took a few decades for Japan to be accepted as a credible manufacturer? China has a weaker foundation to build on due to the lead paint and dead babies and all that.
Give it another 10 years or so. I think we will accept Chinese made Buicks that are really Geelys or BWMs or Brilliances then if they are serious about change global perceptions of Chinese business practices.
# TonyJZX :
May 15th, 2009 at 1:41 am
Give it another 10 years or so. I think we will accept Chinese made Buicks that are really Geelys or BWMs or Brilliances then if they are serious about change global perceptions of Chinese business practices.
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You know that Geely has nothing to do with Chinese Buicks, right?
Comparing Geely to Chinese Buick, is like comparing Ford to American Toyota.