Geely seeks billion USD loan to buy Volvo
Discussion
As the title really, in discussion with 3 Chinese banks for a minimum billion US dollar loan, estimated value for company 1.8 billion according early evening paper today in Sweden.
What do we think?
If Volvo goes to Chinese my current vehicle may just be the last Volvo I have, is what my gut says.
On the other hand they sure will get volume sales just in China. They reckon 200,000 units a year just for domestic market, so I guess a few like me won't make any difference.
Maybe this should be in business forum, dunno really but wondered who else was thinking same as me.
What do we think?
If Volvo goes to Chinese my current vehicle may just be the last Volvo I have, is what my gut says.
On the other hand they sure will get volume sales just in China. They reckon 200,000 units a year just for domestic market, so I guess a few like me won't make any difference.
Maybe this should be in business forum, dunno really but wondered who else was thinking same as me.
Yes.
There wasn't a news article in English about this yesterday. Didn't see much point in posting up the Swedish evening newspaper link as it was in errr Swedish. So far it's mainly with the bloggers.
Reuters blog here
Business week blog here questions whether the deal will be scuppered because of the well known issues that business laws (such as they are) in China are in the Dark Ages, especialy with their lack of recognition re Intellectual Property Rights.
Another blog and much in the same vein, and written before the SAAB / Koenigsegg crashed and burnt, it included this gem.
"For China and its burgeoning auto industry, scoring Volvo would be a coup on several levels. Volvo’s brand as a safe, reliable car could help dispel quality concerns about Geely cars. A Russian car magazine recently crash tested the Geely CK at 40 mph and found that the driver and passenger had a 10% survival rate. "
I could have posted this in Business News and Economics forum but wondered how Volvo owners would view such a move. As I stated at the beginning a move to Chinese ownership could well be the beginning of the end for me. Yes I know they currently make S40s in Shanghai but there is a difference between a daughter company under Swedish control and a locally owned and managed operation. The cultures and ethics of the two countries are totally different.
There wasn't a news article in English about this yesterday. Didn't see much point in posting up the Swedish evening newspaper link as it was in errr Swedish. So far it's mainly with the bloggers.
Reuters blog here
Business week blog here questions whether the deal will be scuppered because of the well known issues that business laws (such as they are) in China are in the Dark Ages, especialy with their lack of recognition re Intellectual Property Rights.
Another blog and much in the same vein, and written before the SAAB / Koenigsegg crashed and burnt, it included this gem.
"For China and its burgeoning auto industry, scoring Volvo would be a coup on several levels. Volvo’s brand as a safe, reliable car could help dispel quality concerns about Geely cars. A Russian car magazine recently crash tested the Geely CK at 40 mph and found that the driver and passenger had a 10% survival rate. "
I could have posted this in Business News and Economics forum but wondered how Volvo owners would view such a move. As I stated at the beginning a move to Chinese ownership could well be the beginning of the end for me. Yes I know they currently make S40s in Shanghai but there is a difference between a daughter company under Swedish control and a locally owned and managed operation. The cultures and ethics of the two countries are totally different.
Ok, I've now read a bit of the blog stuff, plus the thread about SAAB being screwed.
One thing that struck me, is that although it's great for Geely to be getting loads of loans from Chinese banks, surely having to borrow that much money (is 60% roughly right?) will severely inhibit future investment in development etc?
Is 100% certain that Volvo will be sold by Ford?
Personally I think it can only be a bad thing if Volvo are sold to the Chinese. I know not all Chinese companies are the same, but Rover getting sold, has hardly turned that company round has it? I know I'm biased, as I'm an owner, but I think Volvo make decent cars, not great cars, but they've got a decent following and I think with a bit of the right sort of investment could go onto bigger and better things.
On a fairly unrelated note, a new Volvo dealership has just opened in Chesterfield, which is nice!
One thing that struck me, is that although it's great for Geely to be getting loads of loans from Chinese banks, surely having to borrow that much money (is 60% roughly right?) will severely inhibit future investment in development etc?
Is 100% certain that Volvo will be sold by Ford?
Personally I think it can only be a bad thing if Volvo are sold to the Chinese. I know not all Chinese companies are the same, but Rover getting sold, has hardly turned that company round has it? I know I'm biased, as I'm an owner, but I think Volvo make decent cars, not great cars, but they've got a decent following and I think with a bit of the right sort of investment could go onto bigger and better things.
On a fairly unrelated note, a new Volvo dealership has just opened in Chesterfield, which is nice!
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