See the new concept car Volvo C30 Polestar Performance Concept Prototype.
At a press conference held in Gothenburg, Sweden yesterday, Ford executive vice president Lewis Booth and Geely chairman Li Shufu announced that the the Chinese automaker will buy Volvo. The final purchase price is $1.8 billion USD, which includes some of Volvo’s intellectual property and its other physical assets.
The deal means Volvo will be 100-percent owned by Geely, and Ford will not keep any equity stake. Because of the component sharing between existing Volvo vehicles and Ford models, Ford will continue supplying powertrains, stampings and other systems to Volvo for a transitional period.
What makes this deal so tricky is the intellectual property situation. Volvo will be granted special licenses to use some Ford-owned technology and will also be able to sub-license some technology to third parties, including Geely.
Li committed to keeping the Volvo brand separate from Geely while expanding its global reach, particularly in China. Li also stated that Volvo wouldn’t close its factories in Sweden.
The sale is expected to conclude in the third quarter of this year. Unlike the recently aborted sale of Hummer, the Chinese government will most likely approve this deal since Geely is already one of China’s strongest carmakers.
Fast-developing vehicle brand Geely has appointed its first dealership prior to its February launch in New Zealand.
Silvester Motor Company has been selected to represent the Geely brand in Christchurch and the Canterbury Region and will be known as Silvester Geely.
“The opportunity to grow the Geely brand in Canterbury is a fantastic chance to utilise our knowledge and experience in the industry,” commented Donna Silvester, Dealer Principal of Silvester Motor Group. Our current franchise operation provides an excellent platform to launch what will be a serious contender in the new car arena. We look forward to embracing the opportunity and successfully introducing Geely to Christchurch. This will most definitely be an exciting year for the Silvester Group,” said Ms Silvester.
“The move is a further step towards the formation of an important new distributorship in New Zealand”, explained Scott Billman, General Manager of Geely Motors NZ Ltd. “We have received huge interest from dealers all over the country since news broke of our intention to launch Geely in New Zealand,” he said. “If anyone can judge the opportunity of the Geely brand in NZ it is those who have ownership in the motor industry”.
Mr Billman says the Silvester Group is an ideal fit with the brand.
Meanwhile on the world stage Zhejiang Geely Holding Group Co, Ltd, Geely’s parent company, has settled all commercial terms associated with the acquisition of the Volvo brand from the Ford Motor Company.
Silvester Geely will be supporting the Christchurch Lantern Festival and will have the all-new MK hatchback on display at the event in Victoria Square on 6 and 7 March as the Garden City celebrates the Chinese New Year.
It’s not just a new shape, it’s a whole new world
Introducing the redesigned Volvo S40 with more space for just about anything
The new 2008 Volvo C70 convertible and the beautiful song from Melpo Mene.
A woman jumps to a helicopter and meets his husband using a Volvo S80 T6 for their anniversary
This week, Volvo has announced the electric C30, updated to the newer 2010 styling will commence road trials from 2011.
A road-ready prototype of the C30 BEV was unveiled back in September, and now Volvo plans to build 50 of the electric hatches for testing in a programme similar to BMW’s MINI E.
Lennart Stegland, Director of Volvo Cars Special Vehicles said “The first prototype helped us identify the main technological challenges, such as battery packaging and safety issues.”
The two-year trial will consist of Volvo releasing 50 of its electric C30 hatches to selected users for everyday use. The objective of the test is to study the car’s systems and behavioural characteristics.
Mr Stegland said the tests will help not only Volvo’s engineers, but also city infrastructure planners working to establish the requirements of running electric vehicles.
The electric C30 stores its power in a 24kWh lithium-ion battery mounted in the centre tunnel and where the fuel tank previously lived, giving it a driving range of up to 150km on a single charge.
Recharging the battery takes eight hours using a 230v household outlet. The electric C30 will get to 100km/h in just under 11 seconds and go on to a top speed of around 130km/h.