Ford May Consider Geely as Potential Volvo Buyer

Ford has been proactive in getting rid of ailing assets lately,
including included Jaguar, Land Rover, and even Aston Martin. 

But one
brand that Ford has been slow to remove from its umbrella is Volvo. The Swedish automaker has not attracted promising offers, but recent reports suggest that Chinese automaker Geely is currently a front-runner to purchase Volvo.

News sources in China have reported that Geely has submitted a
letter of intent to purchase the company from Ford. However, Ford has
not yet released any details regarding a potential purchase notes St Paul Used Cars, but no other names of potential buyers have yet surfaced.

With Volvo suffering from layoffs and sales setbacks, Boston Auto Loans
suggests the automaker could benefit from producing cars in Geely
facilities in China. The reported offer will include a total investment
of up to $10 billion. In addition to potential China-based production
facilities, Geely also hopes to assist in the development and
deployment of the next generation XC90, which should reach Nashua Volvo Service showrooms within two years.

While Ford has recently denied the sale, and Volvo remaining silent
on the issue, Geely appears to be the most likely candidate as a
potential buyer. Volvo Service Jersey City points out that other Chinese automakers have also been mentioned as viable buyers.

Since the Swedish government has pledged loans to the automaker to help it limp through the current recession, Volvo New York
believes the Volvo brand has become somewhat more attractive for
potential buyers. For a Chinese automaker, the Volvo brand would be
quite attractive as Volvo has a fairly large dealer network within the
lucrative North American auto market, which Chinese automakers have yet
to gain. As Volvo’s estimated value continues to plummet

, it’s likely
that Ford wants to see a sale sooner rather than later.

Source: Free Articles from ArticlesFactory.com

about the author

Joe Kent is a writer for TK Carsites, an automotive website design and marketing firm in Orange, CA, that specializes in car dealer marketing and working with car dealers nationwide.

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