Chinese Car Maker Likely to Bid for Volvo
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BEIJING March 3, 2009; The AIADA newsletter reported that Geely Holding Group is likely to bid to acquire Ford Motor Co.'s Volvo unit, people familiar with the situation said, in what would be a bold attempt by a Chinese auto maker to expand internationally amid the global downturn.
The Wall Street Journal reports that Geely is expected to submit a bid for the Swedish car maker as soon as next week. Click here for a side-by-side comparison of Geely and Volvo.
A person close to Ford acknowledged the Chinese company had been in talks with Ford for more than a year over a possible Volvo deal. Many analysts believe the global auto industry could face a wave of consolidation brought on by the economic crisis and the lowering of consumer demand due to tighter credit. In December, Fiat SpA Chief Executive Sergio Marchionne predicted that only six major auto makers would survive globally.
If its planned bid is successful, Geely intends to maintain Volvo as an international brand, rather than turn it into one more focused on China. Last year, Volvo's U.S. sales fell almost 32 percent, and it posted a $736 million operating loss in the fourth quarter.
