Volvo’s sale to Geely on track, major issues resolved

Ford has officially announced that all substantive commercial issues relating to the sale of Volvo to the Zhejiang Geely Holding Group have been resolved. The current owner of Volvo revealed that it expects the deal to be signed in the first quarter of 2010 and the deal is expected to be fully finalized by the second quarter of next year. The sale is said to be worth about US$ 1.8 billion and it would be the largest acquisition of a foreign automaker by a Chinese company.

Ford also said that some work still remain before the deal can be completed and these include final documentation, financing (from Geely’s end) and relevant government approvals. Ford will focus on its core brand and also revealed that it will still continue to cooperate with Volvo in certain areas after the sale but confirmed that it does not intend to retain a shareholding in the Swedish brand.

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Harvinder Sidhu

Harvinder Singh Sidhu thinks there's nothing better than Formula 1, not even sliced bread. Having written about cars since 2006, he plunged head first into the industry out of a passion for all things four-wheeled and everything in between. The F1 enthusiast has been following the sport since 1999 and has been keeping up with it since. In between races he keeps himself busy as the host of the Driven motoring show and as our version of the Joker.

 

Comments

  • bat clash on Dec 24, 2009 at 5:36 am

    first comment

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  • Geely would be another car brand to watch out for in the future.

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  • kojik on Dec 24, 2009 at 6:03 am

    1st!!

    haha

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  • ohoooiiii~~!!!

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  • European marque goes to china.. so Volvo's wont be continental cars anymore???

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  • bpkid (Member) on Dec 24, 2009 at 7:31 am

    whoaaaaaaa~

    now that's…scary.

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  • Mazda 3 MPS on Dec 24, 2009 at 7:33 am

    this is a sad day for motoring safety. bye bye safe driving.

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  • The volvo in this picture looks like Gen 2.

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  • SY0H (Member) on Dec 24, 2009 at 9:43 am

    man said,

    December 24, 2009 @ 12:39 am

    For god sake, please do not remind us of our hideous local car manufacturer. Volvo has its very own international standard long even before Proton was established. This is a thread on Volvo lah.

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  • torque (Member) on Dec 24, 2009 at 10:19 am

    Sigh…what a waste!! Proton should be the one getting it…prtfhh…buy sub can…send some dude to space can…buying a major car maker so Proton and Malaysian could benefit tech knowledge, just keep quiet only…

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  • Chinese on Dec 24, 2009 at 11:22 am

    Congrats, Malaysian and Proton.

    Chinese knocking at your door.

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  • mystvearn on Dec 24, 2009 at 2:14 pm

    Interesting how a very unsafe car manufacture wants to buy the safest car manufacturer in the world

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  • looktothesky on Dec 24, 2009 at 3:04 pm

    mystvearn said,

    December 24, 2009 @ 6:14 am

    Interesting how a very unsafe car manufacture wants to buy the safest car manufacturer in the world

    ———

    The same question should be come up with that it's interesting why the Swedish government and the people involved in Volvo approve of the action of a very unsafe car manufacture to buy the safest car manufacturer.

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  • 4G63tDSM on Dec 24, 2009 at 3:52 pm

    Oh believe me the chinese will catch up with safety. They very well know that regardless of what we may think about them, as long as they hit the industry standard crash levels, its all good.

    Now, reliability is more of a concern.

    The Chinese are not stupid. By buying up Volvo they have access to all its technical and research knowhow…and can transfer that knowhow to make better vehicles. A short cut so to speak. Besides, they are swimming in cash, what better use of that balance of payments…

    As an aside, the safest cars on the road are French.

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  • littlefire on Dec 24, 2009 at 4:16 pm

    Yup, Chinese are the second smartest people in the world after the Jews. After a few years, i can bet geely cars can also get 5 star NCAP safety also.. By buying Volvo, they can have better safety technology & also low pressure turbo 5 cylinder engine!

    Proton should have bought this 1, compare to Lotus… As i still believe that safety is more important than anything. Look at our country accident rate & people die in it… They should have safety first, before others..

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  • pekan on Dec 24, 2009 at 4:18 pm

    china carmakers are conquering western automotive company one by one.. soon there will be no more continental car, only china cars..

    who knows, in the future they probably buy japanese carmakers too. and probably proton.. watch out..

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  • MADBOY on Dec 24, 2009 at 4:34 pm

    torque said,

    December 24, 2009 @ 2:19 am

    Sigh…what a waste!! Proton should be the one getting it…prtfhh…buy sub can…send some dude to space can…buying a major car maker so Proton and Malaysian could benefit tech knowledge, just keep quiet only…

    —————-

    Yes, Proton should buy it, but can Proton buy it? Does Proton have US$1.8B?

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  • Lancermania on Dec 24, 2009 at 4:55 pm

    so we can expect a cheaper Volvo??

    or some rebadged Geevo??

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  • MyCarMyLife on Dec 24, 2009 at 5:09 pm

    Please accept the fact that China is the place to go , look at the their pops,their cash ( in hand) , their potential ( growth), their hunger ( to succeed), their will ( to excel) I can go on and on.

    If My ppl don't wake up from our dreamy '1' world we will be irrelevant soon.

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  • MyCarMyLife on Dec 24, 2009 at 5:11 pm

    Apologies for repeat . mouse clicker jammed.

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  • 4G63tDSM said,

    December 24, 2009 @ 7:52 am

    'The Chinese are not stupid. By buying up Volvo they have access to all its technical and research knowhow…'

    Yes, but engines are not included in the deal.

    Volvo is currently using Ford, Mitsubishi and old 5cyl. Audi engines… ;)

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  • aiyooo…. when come to things GM want to sell, everyone here wants p1 to buy. actually now p1 is working on to buy GM, VW, Geely, the frech sub manufacturer and General electric (the one that produce the jet engine). then trough p1, gov control all these companies.. that y gov dont care much about VW investment, expensive sub, missing engine, etc.

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  • 1malaysia on Dec 24, 2009 at 7:30 pm

    mystvearn said,

    December 24, 2009 @ 6:14 am

    Interesting how a very unsafe car manufacture wants to buy the safest car manufacturer in the world

    ———————————————————-

    haha…

    in short, safest car is not safe at all! or the unsafe car is the safest!!

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  • Proton should buy mainstream car companies like Volvo instead of small niche players like Lotus. All my years in Malaysia, I never see any Lotus on the road!

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  • Joel said,

    December 24, 2009 @ 12:12 pm

    Proton should buy mainstream car companies like Volvo instead of small niche players like Lotus. All my years in Malaysia, I never see any Lotus on the road!

    __________________________________________________________

    I dont think necessary to have Lotus car on malaysian road. malaysia economic model should be different. malaysia biz should sell their products oversea and bring in the profit only. no need to take over oversea company, then try to make profits out of malaysian. malaysian market size is so small, out of 27 millions people, only 3% patriotic enough to buy local own products. unlike japan or korea, where population more higher, and 90% is patriotic to buy local things, thats why they can growth fast.

    malaysian company should take over companies then make money oversea. no need to sell to malaysian.

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  • Sam @ cars for sale on Dec 24, 2009 at 9:02 pm

    Goodbye safety and goodbye quality, I really hope the Chinese company is exactly what it says it is in the title, a holding company, as opposed to a company that is going turn Volvo into a trashy brand renown for poor quality.

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  • farghmee on Dec 24, 2009 at 9:11 pm

    let c how geely perform with its new acquired asset.

    to buy is one thing, to maintain is another thing.

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  • It's not just a matter of selling cars overseas; of course that is the most important objective. But Lotus is Malaysian owned and none is on Malaysia's roads. Something wrong there???

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  • littlefire on Dec 24, 2009 at 9:29 pm

    I also tot that by owing Lotus, Lotus sport car should be cheaper to own in Malaysia. But sadly is another way around need AP and taxed very high~! WTF! That why until today i only saw 2-3 lotus on the road only for so many years…

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  • Mazda 3 MPS on Dec 24, 2009 at 11:21 pm

    this is probably the last good volvo. next cars would be chinese takeaway, horrible

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  • Ppl would have said the same thing when P1 bought over Lotus… perhaps Volvo would stand alone as it is… the tech transfer would be good for the buyer anyway.. just like how P1 uses the lotus technology for P1 cars. But no matter who buys over who.. the benefit should be the end users…not just abt making money.. but building good quality cars…

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  • torque (Member) on Dec 25, 2009 at 6:03 am

    MADBOY said,

    December 24, 2009 @ 8:34 am

    torque said,

    December 24, 2009 @ 2:19 am

    Sigh…what a waste!! Proton should be the one getting it…prtfhh…buy sub can…send some dude to space can…buying a major car maker so Proton and Malaysian could benefit tech knowledge, just keep quiet only…

    —————-

    Yes, Proton should buy it, but can Proton buy it? Does Proton have US$1.8B?

    _________________________________________________________________________

    Sorry bro, typo error or missing… "GOVERNMENT just keep quiet only…" Of coz Proton doesn't have that US$1.8B but our G have…or HAD…

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  • torque (Member) on Dec 25, 2009 at 6:07 am

    4G63tDSM said,

    December 24, 2009 @ 7:52 am

    As an aside, the safest cars on the road are French.

    ________________________________________________________________________

    That's right bro…I agreed with u and mostly it's RENAULT!!!

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  • litespeed on Dec 25, 2009 at 7:24 pm

    Inevitably, PROTON will somehow be drawn into the picture, whatever picture that is.

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  • chinese army killed on Dec 25, 2009 at 7:30 pm

    For 3rd world mentality safety is not big issue. They even produce poison milk, toxic toys now they talking to build safest cay.

    i always seen floods ,earthquake everyhere there where been 2nd smartest people?

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  • kikas on Dec 26, 2009 at 6:08 am

    For 3rd world mentality safety is not big issue. They even produce poison milk, toxic toys now they talking to build safest cay.

    i always seen floods ,earthquake everyhere there where been 2nd smartest people?

    —————————————————————————————-

    Learn to spell properly, it's car, not cay.   Also What does floods and earthquake got to do with smartest?

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  • squawk on Dec 29, 2009 at 6:38 am

    Could be another Lenovo in the making. Not a bad thing.

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