China Economic Review
Charting China’s changing economic terrain · Since 1990
Geely Volvo will be Volvo
December 31, 2009
Li Shufu, the founder and chairman of Zhejiang Geely Holding Group, the parent of Geely Auto has promised that Volvo’s current production, research and development facilities, union agreements and dealer networks will all be left intact if the deal goes through.Li said, "If the deal succeeds, nothing will change for Volvo, except the boss turns to Li Shufu. Volvo and Geely will be two independently-managed brands."
Ford Motor has said on Wednesday it is nearing an agreement to sell its Volvo unit to Geely, China’s largest private automaker, in a deal that underscores China’s arrival as a major force in the global auto industry.
The value of the deal, which Ford said it expects to sign in the first quarter and close in the second quarter of 2010, has been estimated at $1.8 billion. Reuters reports Ford paid $6.45 billion for Volvo in 1999.