We’ve always wondered what would happen with Volvo’s current Chinese joint venture with ChangAn once someone like Geely buys Volvo. Our Best & Brightest openly did “wonder how this’ll effect Changan which already makes Volvo’s in their JV.” Well, now we know why ChangAn is so sanguine. “ Geely said today that it is interested in buying Volvo’s China operations, if Geely is successful in buying Volvo from Ford, Gasgoo reports.
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The Wall Street Journal reports that the Crown group, which includes former Ford Executives Michael Dingman and Shamel Rushwin as well as former Volvo CEO Roger Holtback, are still in the hunt to buy Volvo Cars from Ford, or at least they like to think they are! Ford has been keeping these guys on the back burner behind Geely and told Crown to come back when they had money lined up. Guess what, Crown now says their “offer is fully funded and includes participation by Swedish investors … two adjustments aimed at making the offer more attractive to Ford in the sale of the Swedish operation.” 
The car business and the news surrounding it have their seasonality (hence the SAAR.) As far as the news is concerned, we must have reached the “soak” part of the news cycle. It can only spin faster, or we should all take a vacation. Read on if you suffer from insomnia …
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Pundits keep repeating that the biggest obstacle to Chinese companies buying Western brands is the culture gap. Adept at building monstrous bridges, the Chinese are tackling the culture thing. They even switched from Chinglish to Americanisms. Asked by reporters whether BAIC would consider approaching Saab alone, BAIC CEO Wang Dazong said: “I would just say, ‘stay tuned a little bit’.”
And who says Americans just plan for the next quarter, while Chinese plan for eternities? Wang Dazong sounds like GM is inhabited by slowpokes. Or by folks who had too much weed:
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After we reported yesterday that the talks between Geely and Ford about Volvo are intensifying, China’s Xinhua news agency runs a terse one-liner today: “China’s Geely Holding Group said Friday it was having a detailed and in-depth discussion with Ford over relevant terms and contracts about acquiring Volvo.” That’s it. Short, sweet, and to the point. (Read More…)
While bumbling GM so far hasn’t closed any of their cast-off brands deals, Ford’s Volvo sale to Geely appears to progress quietly, but steadily. The usually well informed and reliable China Car Times says that Geely is “feeling secure about the Volvo purchase.”
Ford has enlisted JP Morgan and Citigroup to assist with the sale, Geely has employed Rothschild. The deal is expected to close soon, “before the start of 2010.”
According to CCT, Geely is working off a seven point checklist:
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For weeks now, the only realistic bid for Volvo has has come from the Chinese automaker Geely. They’ve been Fords’ “preferred bidder” for about a month ago, and last week, Geely’s management were in meetings with Volvo’s unions, and with Volvo AB (commercial vehicle company) about the Volvo trademarks – which are owned 50/50 between Ford and Volvo AB. At the same time time, Ford seemes to be in no hurry to sell Volvo, leading many to speculate that Ford was dragging their feet waiting for new and improved offers. We’ve been posting about the two other possible bidders, Consortiums Jakob and Crown earlier, and reports in Swedish media today say that Crown are now ready to make an offer, to be presented this week.
Sweden’s unions are on a hot trail. They think that –ohmygod- the Chinese government could be pulling the strings with Geely and Volvo. China’s Geely won’t say where they get the money for buying Volvo from Ford. Geely says its backers include Chinese banks. Sweden’s union leaders are concerned that the Chinese government may ultimately be behind the takeover. Well duh, most (if not all) Chinese banks are owned by the Chinese government. Kindof. Somehow.
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Customers in this segment want emotional appeal, sporty design and dynamic driving properties. The S60 has it all. We are convinced that it will be one of the strongest contenders around
Volvo CEO Stephen Odell explains in the press release for the new S60 why people who buy 3 Series sedans don’t cross-shop Volvo… and why he wants to expand his brand so that someday they might. But leaving aside the sad fact that every luxury brand wants to build “the new 3 Series,” we’re having a hard time figuring this move out. Considering that Volvo is about to get a Chinese-style upscale overhaul, expect the “dynamic driving properties” part of the “what does Volvo stand for this week” exercise to fall off the radar with haste. And really, Volvo makes a lot more sense as a Euro-tinged, safety-forward alternative to Lexus and (in China) Buick than a BMW wannabe.
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