China’s Geely preferred Volvo buyer

China’s Geely preferred Volvo buyer

China Geely

It’s been rumoured for months that Chinese automaker Geely looked likely to pick up the Volvo brand from Ford, and yesterday it was confirmed. Geely was named as the preferred bidder and negotiations are commencing. However, this is not going to be an easy deal to close. Ford isn’t interested in keeping any stake in the Swedish company, although it does hope to continue some product cooperation.

Despite desperately wanting rid of Volvo, Ford doesn’t want it to die off and wants whoever buys it to have the resources to make it a going concern. One difficult issue will be intellectual property concerns. Any time a manufacturer sale like this happens, the seller is worried about leaving too much information lying around, and that concern is understandably intensified when dealing with a hungry Chinese company. There is no word on when a deal might be closed but it’s sure to take some time.

China Geely

It’s been rumoured for months that Chinese automaker Geely looked likely to pick up the Volvo brand from Ford, and yesterday it was confirmed. Geely was named as the preferred bidder and negotiations are commencing. However, this is not going to be an easy deal to close. Ford isn’t interested in keeping any stake in the Swedish company, although it does hope to continue some product cooperation.

Despite desperately wanting rid of Volvo, Ford doesn’t want it to die off and wants whoever buys it to have the resources to make it a going concern. One difficult issue will be intellectual property concerns. Any time a manufacturer sale like this happens, the seller is worried about leaving too much information lying around, and that concern is understandably intensified when dealing with a hungry Chinese company. There is no word on when a deal might be closed but it’s sure to take some time.

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