Chinese Geely NOT interested in Volvo Cars

Chinese car maker Geely has withdrawn its offer to buy Ford Motor's Sweden-based Volvo Cars.

Related news:
• Chinese Geely wants to buy Volvo Cars
• Swedish car-makers’ unions fear Chinese takeover

Geely Automobile, China’s biggest privately owned carmaker, said last week it was interested in buying 100 percent of Volvo Cars. Now all such plans have been scrapped.

Managers at Volvo Cars in Gothenburg have been informed by officials at Ford that the Chinese company never intended to make such an offer.

“They explained over the weekend that they have never made such a statement,” Stephen Odell told business daily Dagens Industri.

Last week Geely Automobile's CEO Gui Shengyue said that its parent Geely Holding Group were interested in full ownership of Volvo. The newspaper pointed out that Gui Shengyue spoke on behalf of the entire Geely Group although he's only head of one of its subsidiaries, making the statement out of the ordinary.

A number of Swedish unions have been worried about the Chinese take-over of Volvo as they fear that exclusive technology will be snitched and used in less advanced Chinese vehicles. The unions are also worried that Swedish jobs would disappear to China.

 

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Last Updated (Wednesday, 16 September 2009 09:07)

 
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