Touchy-Geely on Volvo takeover
US consortium takes some shine off Chinese car-maker Geely Automobile's bid to buy VolvoThe chances of Volvo going from Ford to small Chinese carmaker Geely look a little less certain now that a US-led consortium has raised its hand expressing an interest in taking over the Swedish loss-maker from Ford.
Although it has been reported that Geely is still in the box seat for a takeover, the US Crown consortium headed by former Ford director and veteran company turnaround specialist Michael Dingman, is considered a credible alternative.
One of the big differences is the money: It is reported that the Crown bid is significantly less than that of Geely's claimed US$2.2 billion.
However certain sympathies lean towards the Crown bid. It is being suggested that intellectual property issues would not be the problem they could be with Geely, and there is a reported lack of support from the Swedish government for the Geely bid which, theoretically, could result in some plans for financial assistance to Crown.
On Geely's side is the higher bid, and its muscle as a relatively large company to steer Volvo out of its financial woes.
Both bids reportedly offer similar investment in revitalising Volvo.
Either way, nothing is yet coming from either Volvo or Ford, although it is expected an announcement will be made within the next few weeks.
Read the latest Carsales Network news and reviews on your mobile, iPhone or PDA at www.carsales.mobi
Tags
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
