Archive for the ‘Geely’ Category

In today's episode of the Ford/Volvo saga, the U.S. consortium known as Crown has announced plans to submit a bid for Volvo this week that will rival that of Chinese automaker (and current preferred bidder) Geely. Crown's bid will be in the $2 billion to $2.5 billion range -- somewhat less than Geely's rumored $3 billion offer. However, Crown may have an advantage at the bargaining table in that it's more likely to abide by international intellectual property law -- one of Ford's major concerns. And as we've previously noted, Crown has matched Geely's offer to invest $3 billion in Volvo after the sale to revitalize the brand. No word on...

We've been keeping a close eye on the evolving Ford/Volvo/Geely saga. So far, the biggest point of contention in the brou-ha-ha has been Ford's concerns about intellectual property, which Geely might or might not respect after the ink dries. (China hasn't exactly been at the forefront of IP law.) However, there have also been unspoken worries about the shift in production that could result from such a deal, moving factories and jobs from Europe to the Far East. Geely tried to quell some of those concerns by saying that it intends to keep Volvo's production in Europe -- if the sale goes through, of course -- but there's also talk of a new,...

A couple of weeks ago, we reported that Crown -- a consortium of American investors led by former auto industry executives -- is making a play for Volvo. The group's bid for the brand is substantially lower than that of current front-runner Geely, but we pointed out that the Americans do have some advantages at the bargaining table, especially when it comes to one of Ford's biggest concerns: intellectual property. China in general, and Geely in particular, aren't known for respecting IP rights, and as negotiations move forward, we suggested that could become a sticking point.

Apparently, it has become a sticking point.

Two sources close to...