Author Topic: China's Geely buys Volvo for $1.5bn  (Read 3199 times)

adroth

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China's Geely buys Volvo for $1.5bn
« on: September 01, 2017, 05:02:33 PM »
China's Geely buys Volvo for $1.5bn
By Sarah Arnott Monday 2 August 2010 23:00 BST0 comments
   
http://www.independent.co.uk/news/business/news/chinas-geely-buys-volvo-for-15bn-2041772.html

China's Geely completed the $1.5bn (£1.2bn) acquisition of Volvo from Ford yesterday, catapulting a Chinese car maker into the global league for the first time.

And fresh from the signing ceremony with Ford's chief financial officer Lewis Booth in London, Geely's chairman Li Shufu is with Manganese Bronze today for talks about Geely taking control of the London taxi-maker. The Volvo deal was sealed with $1.3bn in cash and a $200m loan note – slightly lower than the $1.8bn price agreed in March due to "adjustments" in pension obligations and working capital, Geely said. Ford said it expects further proceeds following a "true up" later in the year.

The deal is the first takeover of a premium global car brand by a Chinese company. Mr Li described the deal as "a historic day for Geely", and pledged to maintain Volvo's identity. "This famous Swedish brand will remain true to its core values of safety, quality, environmental care and modern Scandinavian design," Mr Li said.

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adroth

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Re: China's Geely buys Volvo for $1.5bn
« Reply #1 on: September 01, 2017, 05:06:52 PM »
Volvo's Chinese owner to buy Lotus
By Matthew Rocco  Published May 24, 2017 Auto  FOXBusiness Opens a New Window.

http://www.foxbusiness.com/markets/2017/05/24/volvos-chinese-owner-to-buy-lotus.html

Lotus, the British sports car maker, has a new owner from China.

Chinese manufacturer Geely, the parent company of Sweden’s Volvo, agreed on Wednesday to buy a controlling 51% stake in Lotus.

The deal comes at a time when Lotus has struggled to turn a profit. For its fiscal year ending March 31, 2016, Lotus reported a loss of 27.6 million British pounds, or $35.7 million in current dollars. Lotus sold 1,584 cars in 2016, down 13% year-over-year.

The injection of cash from Geely is expected to boost the sports car brand’s portfolio. Lotus has signaled that it’s working on an SUV Opens a New Window. , and it wants to add a new version of the Elise roadster. Geely said it plans to accelerate the rollout of new products once the purchase is complete.

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adroth

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Re: China's Geely buys Volvo for $1.5bn
« Reply #2 on: November 30, 2018, 05:53:48 AM »
Volvo Cars drops IPO due to trade tensions and auto stocks downturn
Norihiko Shirouzu, Laurence Frost
4 MIN READ

https://www.reuters.com/article/us-volvo-cars-ipo/volvo-cars-drops-ipo-due-to-trade-tensions-and-auto-stocks-downturn-idUSKCN1LQ0IO

BEIJING/PARIS (Reuters) - Volvo Cars and its Chinese owner Geely have postponed plans to float shares in the Swedish carmaker, blaming trade tensions and a downturn in automotive stocks.

But while Volvo’s plans for a Stockholm listing were delayed indefinitely, Britain’s Aston Martin vowed to push ahead with its own initial public offering.

“We’ve come to the conclusion that the timing is not optimal for an IPO right now,” Volvo Chief Executive Hakan Samuelsson told Reuters by telephone on Monday, confirming a decision which was first reported by the Financial Times.

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adroth

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Re: China's Geely buys Volvo for $1.5bn
« Reply #3 on: February 05, 2019, 03:10:58 PM »
China Finds Something Else To Steal From Western Automakers
9 HOURS AGO BY JAY TRAUGOTT  INDUSTRY NEWS
And this time it's actually legal.

https://carbuzz.com/news/china-finds-something-else-to-steal-from-western-automakers

Some Chinese carmakers have reputation for literally stealing the vehicle designs from Western automakers. Land Rover, for example, is the victim of the Land Wind X7. The latter looks awfully like the Land Rover Ranger Evoque. Land Rover tried to sue but, big surprise, the Chinese government wouldn’t allow it. But the actions of certain Chinese automakers have hurt the image of the country’s car industry, but now it’s taking some course-correcting measures.

As Bloomberg reports, Geely Automotive, the company controlled by Volvo Group owner billionaire Li Shufu, has poached Jaguar Land Rover chief designer Wayne Burgess to head its own design studio. Why not simply hire the talent in the first place instead of stealing their designs?

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