Intellectual property rights issues have been resolved, according to a Geely spokesman
30 November 2009

Geely has reached an agreement with Ford on the issue of Volvo’s intellectual property rights, according to a company spokesman.

The European-abased spokesman told Reuters that the major obstacle in Geely’s takeover of Volvo from Ford had now been overcome. Ford has declared Geely as its preferred bidder for the Swedish firm.

The spokesman said if the deal is completed, then Geely will have ownership of all technologies exclusively developed by Volvo.

Ford will be allowed access to any technologies which are crucial to the feature of its business, including safety and environmental features.

The agreement won’t apply the other way around, however, as Geely will not be allowed access or have any rights to any similar technology developed by Ford.

When Ford announced Geely as its preferred bidder for Volvo last month, Ford’s chief financial officer Lewis Booth highlighted the importance of reaching an agreement that was acceptable for both parties.

“Ford’s objective in our discussions with Geely is to secure an agreement that is in the best interests of all the parties,” he said.

“Any prospective sale would have to ensure that Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise.

“Ford believes Geely has the potential to be a responsible future owner of Volvo and to take the business forward while preserving its core values and the independence of the Swedish brand. But there is much work that needs to be completed in the more substantive discussions that are agreed to take place. We have no specific timeline to conclude the discussion.”

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Comments
5

30 November 2009

- its good to see Ford disposing of Volvo with honour and responsibility as it did with JLR

-unlike BM with Rover it has to be said as BMW just cut and ran - no honour and responsibility as has been shown by Ford or Honda for that matter.

-Ford have got the better honour and responsibility as has Honda and Brawn

30 November 2009

CapsLock, cut out this rubbish! Once again an article about Ford and Volvo has you whinging on about BMW. You are factually incorrect in most of what you say and a crashing bore in everything you write.

Honda could have bought Rover, they decided not to. BAe wanted the higher cash bid. That is business. As for Ford's unwavering morality, look up the decision making behind not fixing the Ford Pinto.

Companies are not moral, or immoral, good or bad, they are large complex organisations who change over time and have multiple decision makers.

As far as this article goes, lets hope Volvo have a good future under Geely, It's very much a step into the unknown.

30 November 2009

What is interesting is whether a Chinese owner would stop people buying Volvos? I must admit I expected Jaguar and Land Rover sales to be badly affected by being owned by Tata, but it doesn't seem to have worked that way, so maybe it doesn't matter who owns the comapny as long as the product remains good...

This maybe the same fate for Saab - interesting times!

1 December 2009

I think this is fantastic news it will really help volvo and should help them expand into new markets.

The only concern I have is of companies that use volvo parts such as aston martin will they lose there parts or will they still get them. Hopefully they get to keep them or else it would be a very expensive issue for aston martin to create all the parts that volvo did for them the exact same.

1 December 2009

I really hope Volvo can survive and flourish, they already have so much potential that with some careful marketing and gentle finessing of the product they could be an incredible brand. Just look what VW did with Audi over the past 20 years.

It's such a shame that Ford couldn't make the relationship work, Volvo designs and engines combined with Ford chassis tuning expertise could have been a wonderful combination.

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