US report claims Chinese firm has bid £1.5bn for Volvo
25 September 2009

Chinese manufacturer Geely has emerged as the leading contender to takeover Volvo from Ford, according to a report from the US.

Ford is currently examining a bid from Geely for Volvo, which is believed to be worth $2.5 billion (£1.5bn).

The report in the Wall Street Journal claimed the bid was much higher than Ford or outsiders had expected for Volvo, a brand which is believed to have lost more than $1bn (£625m) in recent years.

However, one sticking point could be Geely’s demands to only take on Volvo’s assets, such as its safety technology and factories, and would not want to be involved in any post-Ford restructuring process, taking on pension debt or unwanted inventory.

Volvo’s technology is expected to be a crucial part of the deal and Ford isn’t keen to see a brand which is expected t become a rival in Europe and Asia benefit from it.

Last month, Ford’s chief financial officer Lewis Booth, said: “We expected this to be a pretty long process because of the environment we're working in.

“We haven't got an explicit timetable. We're still talking to interested parties. We're working through the options.

Ford CEO Alan Mulally said today that talks to sell Volvo were progressing.

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25 September 2009

[quote Autocar]The report in the Wall Street Journal claimed the bid was much higher than Ford or outsiders had expected for Volvo[/quote]

Old Chinese proverb say: Chinaman no fool, he get rid of worthless, arse-wipey US Dollar and buy some real asset, before USA go down plughole taking $1.3 trillion reserves of Chinaman with it.

China's on a massive buying spree, gold, commodities, car companies, Africa, whatever it can get, a.s.a.p., before the printing by the American central bank makes its enormous trading surplus reserves worthless. It's a smart move. The Chinese know America's on the slide and the only way out for it is to print to infinity to pay its debts. The question is will China 'decouple' itself sufficiently in time to not have America take it down with them.

25 September 2009

If this deal goes through I am never going to buy a new Volvo or Ford.

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