This isn’t exactly British car news, but Swedish car maker Volvo is heading into Chinese hands, after owner Ford announced that Geely is in pole position to buy the struggling manufacturer. Following in the footsteps of MG Rover’s sale to Shanghai Automotive and Nanjing Automobile, the potential deal marks the latest move by a fast-expanding Chinese car maker to boost its presence in Europe. Negotiations have been ongoing for some time, and it is understood Ford was only willing to enter into discussions once it had evaluated the firm’s Chinese operations. Now the green light has been given, the future of Volvo and the launch of promising upcoming models such as the S60 should be secure. The move will also benefit Geely. Volvo’s research and development expertise and engineering skills will be a huge bonus, as its main interests are […]
Ford is in talks with the Shanghai Automotive Industry Corporation, China’s biggest car-maker, in a desperate attempt to sell its prestigious Volvo brand. A source close to the American motor giant said it recently made a second approach to SAIC, which already owns the rights to the MG car marque. Earlier talks in the summer faltered over price. Ford, which bought Volvo for £4.4billion in 1999, is said to be hoping the sale will fetch £4 billion. The disposal would send an important signal to the US Congress that Ford is taking major action to restructure its business in return for a massive cash injection.