Report: Geely planning to keep Volvo running as is
By Andrew C., 26 Aug, 2010. 0 Comments
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Geely doesn't plan on disrupting Volvo's development, production, or dealership operations if the sale does get finalized, according to a report from a Chinese news agency. It's expected that in early 2010, Ford will sign a deal with Geely, which will buy Volvo's operations for about $1.8 billion. In recent years, Ford has shed Aston Martin, Jaguar, and Land Rover in an effort to return to profitability. Volvo has proven to be the most difficult to sell. The hurdle in the Volvo sale has been the intellectual property rights associated with the brand since many Ford products use a common platform with Volvo products. Li Shufu, the founder and chairman of Zhejiang Geely Holding Group, the parent company of Geely, said that he looks forward to having Volvo in the company's portfolio. Geely benefits since it will have access to Volvo‚ better technology for alternative fuel vehicles. On the other hand, Geely could help Volvo expand in the Chinese market as well as reduce production costs.
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