Geely's purchase of Volvo hints to Chinese global future in Car Industry
There is no doubt about it. China is a major player in the world auto industry. Proof? The latest rumor is that Geely Automobile Holdings of China is in talks with Ford to purchase Volvo from the American automaker. Moreover, other Chinese automakers are said to be in the running include Chery and Chongqing Changan Automobile Co. It is said that Geely is interested because it wants to expand its price range of vehicles after it added sedans to its line of low cost compact vehicles. Reports say that Geely already has tapped the Export-Import Bank of China as the source for financing the venture. Talk is that Ford is willing to accept less than the $6.4 billion it paid out for the Swedish company in 1999. Our take? We would guess that owning Volvo will also assist Geely to penetrate into markets it is not now in. via Bloomberg
DETROIT – GM Chairman and CEO Rick Wagoner today announced that Robert A.