Volvo Sold | Chinese Firm Geely Purchase The Ford-Owned Brand

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I am a massive Volvo fan. They aren’t the sexiest cars in the world, but as a kid I always felt safe when I clambered into our big estate – I felt like I was in a tank rather than a car. This is why the news of Volvo’s sale yesterday has made me quite excited – because it suggests that the brand, which was previously owned by Ford, may have a chance to start off on the up again.

Although last time Volvo was sold, back in 1999, Ford paid a massive $6.5 billion for it, those types of figures haven’t even vaguely been reached this time around. Instead, the agreed price was $1.8 billion. Now, I am no accountant, but I am willing to bet that Ford won’t be happy with such a huge loss.

Sales like this show just how difficult the economic troubles have been on the car industry. Whilst dealers and brands are always waxing lyrical about the damage being less than expected, it is clear that debts have skyrockets and profits dropped to the ground. The sale of brands such as Volvo suggests desperate times calling for desperate measures, where any way to reduce debt and put the company back on top has to be seriously considered.

So, what do we know about the brand that purchased Volvo?

Geely, new owners of Volvo

Well, Geely Automobiles is probably going to open up a huge area of opportunity for the flagging Volvo brand, as they are very well established in the Chinese market – expecting to sell 400,000 cars there this year. Add to this a way into the European market, and we may well be seeing a player that could start pushing Volvo back towards profit.

Geely aren’t one of the big names in the automotive industry (they started out selling refrigerators, for Christ’s┬ásake!), but I for one am interested in what path yet another up-and-coming Chinese manufacturer with take…

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Posted by admin   @   29 March 2010

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3 Opinions

  • Anne Duke

    Ref Ford Sales of Volvo to a Chinese company. I’m very disappointed in this sale because it appears to be a sacrifice of an engineering giant in order to save Ford Cars, which I deem as inferior to Volvo. I say sacrifice because the loyal Volvo customers will probably not buy future Volvos. I’m not sure what their customer base will be. After the Chinese company starts manufacturing the Volvo cars, the quality will deginerate to a “Geely” type vehicle. We’ve been a Volvo family for 25 years and have entrusted our lives to Volvo engineering. We love our Volvo cars, but once the sale goes through, we will NEVER EVER buy a Volvo again. Chinese manufacturers can never be trusted to deliver safe vehicles. Take a look at their track record. They will not take responsibility for the numerous problems that we’ve seen with their products over that past several years. How about that Chinese drywall? They simply say that it is not their fault. Why would we think that Chinese manufacturers would ever take responsibility for delivering a safe and reliable automobile? If you think Toyota Corp has been deceptive, you have not seen anything yet. Good bye to a wonderful car.

  • http://trovit.co.in ashu

    wonderful car…. will it come to India …???

  • Will

    It depends on how Geely management handles Volvo. They must value Volvo and it’s engineering capabilities, emphasis on quality and safety. Geely must let Volvo run as a separate entity and allow it to grow as a car manufacturer without any constraints. Volvo must be run as Volvo, not as Geely.

    Geely could actually learn something from Volvo, hence improving the chinese auto industry.

    I don’t see a problem with Volvo changing ownership. I’m sure that many purists were outraged when Ford took over. That phase of ownership was disastrous for Ford, but Volvo’s core values remained and the brand still produces amazing cars. To me, that’s all that matters. Live on Volvo

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