Chinese automaker Geely has managed to find USD 2.1 billion worth of financing and will seal an agreement with Ford for the acquisition of Volvo Car Corporation by the end of this month, according to reports. The capital was raised from unidentified financial institutions and local governments.
An AFP report said that Geely does not plan to move Volvo production of to China. Trade unions in Sweden are fearing job cuts at Volvo Cars, which has 16,000 staff on its payroll in the high cost Scandinavian country and 8,000 more across the globe.
At the same time, news sources from Hong Kong (where Geely is listed) say that the Hangzhou based company is selecting locations in China for Volvo production, with Beijing and Tianjin vying for the project. The reports add that Geely will set up a plant in China with a production capacity of about 300,000 vehicles annually, nearly doubling Volvo’s global output. This move is aimed to steer Volvo into profitability before 2011 through China’s lower manufacturing and labour costs. If this plan works, the fears of the well paid fatihfuls back in Gothenburg is very likely to turn into reality.
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oh no
A RM150k C30 is quite nice thought actually.
So Volvo only produce 150,000 cars annually before this? hurm, i wonder what Geely going to turn Volvo into. China could say that they produce both the weakest and safest car after this. But I must admit, China and India are the new giant in economy, will be surpassing Japan and German soon!
For the Sweden employee, so pity that they might loss thier job.
For those workers / employees will understand that how worst it is if loss a job.
But for the big boss, sure focus on profit, move to China definitely can save a lot on labour cost.
Later Geely add the northeast arrow to its logo
Volvo for…. China!!??? new tagline? haha… so sad.
I dont think so…..The market in china will be mostly for domestic markets and also the region near china only…….So i personally dont think there will be too much cutting on staff just because the market in china is set up.
Unless they want to close their operations in Europe& US…….Then i dont think there will be much staff cutting….Because they also need some staff from sweden to go over china for some training sessions and monitoring process……
Wolwo is the new Volvo, just like what Roewe is for Rover.
good bye volvo !
it's better to return Volvo to the Sweds ..
birth of a new combi brand: Volvogeely
China buys Volvo, so geli la.
The Chinese will destroy the Swede masterpiece, they're not interested in the brand or what it stands for, but just the technology.
China is the next big power of the world, we all knew it the day it opens it market!
Rover have been sold to China, and what they achieve is even more better compare to UK (Still surviving!). Even Buick can survive in China, why not Volvo?
I am going to bet in the next few years, EuroNCAP 5 star China made cars are not possible. Thanks to Geely & Volvo.
For us, all those safety gadget will be more cheaper and easier to be purchase as mass production are cheap overthere…
Anyway if i not mistaken, Volvo factory in Sweden will not be close. As they will need R&D and manufacturing plant in Europe.
saya tak rasa Geely sbg pemilik baru akan tutup kilang Volvo di Sweden. Sebabnya sykt2 automatif china lain spt BYD, Chery, Brilliance dll dalam usaha membina kilang automatif mereka di negara Eropah spt Jerman dan Itali. Bahkan BYD ada usaha buka kilang di California, USA. Saya rasa kalau Geely jual dan tutup kilang di Sweden, ia adalah langkah kebelakang dan kurang efisyen.
1) Reputasi jenama Volvo akan jatuh
2) Volvo akan hilang keistimewaan dari segi percukaian dll insentif bg pasaran Eropah jika ia dibina di China untuk jualan Eropah
saya rasa Geely akan terus mengoperasikan kilang mereka di Sweden tetapi dalam masa yang sama membuka kilang baru di China. Lagipun kerajaan China menetapkan perlunya pembinaan kilang di China bg menikmati keistimewaaan dr segi cukai dan insentif2 lain. So sy kira Geely akan membuka kilang di China utk tackle pasaran premium kenderaan di China. 300, 000 output setahun sy rasa ia lebih menjurus kepada permintaan domestik ( china ) dan bukan global. Apapun boleh jadi kilang di China akan menjadi pembekal utama kompenen sebelum dipasang di kilang di Sweden. Volvo hanya akan mula memindahkan ibu pejabatnya ke China jika Geely berjaya meyakinkan pengguna dunia Volvo masih berkualiti sungguhpun di bawah milikan baru. Maybe the next 5 year?
WTF?? i was hoping Geely not able to secure the deal. But too bad. Bye Volvo
damn, volvo will be made in china? will they able to produce good quality?
the lenovo thinkpad now (which are made in china) are very unreliable compared to the ibm days. will volvo be the same case?
will the price of Volvo cars come down if the prod is moved to China?