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March 28, 2010
<span style="font-weight: bold">Chinese Company Geely to Buy Volvo</span>
By KEITH BRADSHER
HONG KONG — Ford Motor reached an agreement on Sunday to sell its Volvo subsidiary to a Chinese conglomerate, in the clearest confirmation yet of China’s global ambitions in the auto industry.
Zhejiang Geely Holding Group, based in Hangzhou, agreed to pay $1.8 billion for Volvo, with $1.6 billion in cash and the rest in a note payable to Ford.
The sale of one of Europe’s most storied brands shows how China has emerged not just as the world’s largest auto market in the past year, but also as a country determined to capture market share around the globe.
Zhejiang Geely said it planned to retain production of Volvo cars in Sweden, but it is expected to build another assembly plant for them in China, most likely near Beijing or Shanghai. Ford already builds small numbers of Volvos for the Chinese market at an assembly plant in Chongqing. Most of the vehicles output at that factory are Fords and Mazdas for sale in China.
From today's New York Times
<span style="font-weight: bold">Chinese Company Geely to Buy Volvo</span>
By KEITH BRADSHER
HONG KONG — Ford Motor reached an agreement on Sunday to sell its Volvo subsidiary to a Chinese conglomerate, in the clearest confirmation yet of China’s global ambitions in the auto industry.
Zhejiang Geely Holding Group, based in Hangzhou, agreed to pay $1.8 billion for Volvo, with $1.6 billion in cash and the rest in a note payable to Ford.
The sale of one of Europe’s most storied brands shows how China has emerged not just as the world’s largest auto market in the past year, but also as a country determined to capture market share around the globe.
Zhejiang Geely said it planned to retain production of Volvo cars in Sweden, but it is expected to build another assembly plant for them in China, most likely near Beijing or Shanghai. Ford already builds small numbers of Volvos for the Chinese market at an assembly plant in Chongqing. Most of the vehicles output at that factory are Fords and Mazdas for sale in China.
From today's New York Times
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