Geely Automobile a possible Volvo purchaser
By Andrew C., 30 Aug, 2010. 0 Comments
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One of China's emerging automakers is in the sights of Ford as a purchaser for Volvo, as Ford urgently attempts to rationalize the company's operations in the international arena. But even as much of the guesswork on a possible suitor for Volvo has concentrated on the Shanghai Automotive Industry Corporation (SAIC) and Changan Automobile, which at present manufactures long-wheelbase variants of the S80 for the Chinese market. Geely Automobile has demonstrated interest in a controlling stake in the Swedish marquee.The personnel of Geely had an initial visit of Volvo's headquarters in Gothenburg early this year, after moves by Ford to close its Premier Automotive Group, which included Volvo, Jaguar, Land Rover and Aston Martin models. During that time, Geely was not able to cash out the $6bn (£4bn) that Ford was demanding for Volvo. But insiders of Ford are now suggesting that Mulally is prepared to sell Volvo at a considerably lower price, discussions between the two automakers have begun anew. One of the sticking points for any agreement with a Chinese automaker is the intellectual property concurrence with regards to the Ford-based platforms on which Volvos are founded. Autocar sources say any purchaser would be forbidden from utilizing these platforms for any other brand. [source]
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