China Economic Review
Charting China’s changing economic terrain · Since 1990
Geely probably got, is getting, Volvo
February 16, 2010
Although there is yet to be official confirmation enough people close to the deal say it is effectively completed. This is a massive write-down for Ford which bought Volvo for $6.5 billion in 1999. One source says Geely will acquire net assets worth more than $1.5 billion in the deal.
It is reported that officials of China’s National Development and Reform Commission (NDRC), related government departments are in Sweden while Geely’s negotiating team is in the United States finalizing the deal with Ford.
The Economic Observer reports there is concern about what impact the acquisition will have on the ongoing agreement between Volvo and the Chinese Chang’an Automobile Group. Chang’an currently has a contract with Volvo to manufacture the S80L and S40 models.