Geely sourcing Volvo: The "News" that is taking place

Geely's acquisition of Volvo could soon turn from "gossip" to "news". Although potential bidders, including Geely, have previously denied bids, but the daily economic news reporter yesterday from the party inside an executive staff to understand that Geely has been with Ford on the acquisition of Volvo has reached a preliminary intention, after the acquisition of Volvo or will be settled in Guangzhou, Dongguan, the first domestic model will be XC90, The two sides will further discuss the details of whether the job cuts, market layout, technology transfer and so on after the merger.　　The news has not yet been confirmed by the authorities on both sides.　　But the insiders did not disclose the possible purchase price, and analysts pointed out that Geely's acquisition of Volvo is the key to price, perhaps there will be some variables. XC90 or next year's domestic price of about 40% this April, Ford completed its assessment of Volvo, and through the investment bank to Chinese companies issued a sale of Volvo information.　　The move immediately attracted a number of Chinese auto companies in response, there have been Geely, Changan, Chery and other domestic auto companies trapped in the acquisition of Volvo, the "gossip", a few days ago, said Baic also tried to participate in it. Earlier, there are close to Geely senior authorities on the daily economic news reporter said Geely has indeed had close contact with Volvo on the acquisition matters, Geely has been to Guangdong Zhongshan, Zhuhai, Dongguan and other places to visit, in order to solve the future Geely-Volvo project settled where the problem.　　It is reported that the three governments have pledged to give Geely the land, funds and other support. Yesterday, the reporter learned that Ford and Geely have at the negotiating table on the acquisition of Volvo, the issue reached a consensus, is further negotiations. The news was confirmed by one of the party's internal executives, who told reporters that after Geely's acquisition of Volvo, it would choose to have its production base settled in Dongguan, and if all goes well, the project will be first put into operation in 2010 years or 2011 to launch Volvo XC90,　　Prices are expected to be about 40% lower than imported models.　　Industry experts at the same time that Geely acquisition of Volvo, and will not affect the original already made in Changan Volvo project, but also because S40 and S80 in the Chinese market sales performance is not ideal, if Geely acquisition Volvo success, will choose new products, XC90 is a good choice. On the news that Geely will buy Volvo, the director of China's public relations in Volvo said: "We have not received any notice of the acquisition by Geely, we can only continue our work at present." Ford will be the boss of Volvo in the future. "The price remains sensitive, but there is a certain amount of uncertainty about the purchase price," the insiders said. Analysts also pointed out that Geely's acquisition of Volvo is key to Price, Geely and Changan recently separately said in a few months there will be no major restructuring matters, but also to some extent, to pave the way for pricing.　　At the core of the purchase price, perhaps there are some variables. Ford bids 6 At the end of 2008, affected by the financial crisis0 dollars to sell Volvo. But earlier analysts have pointed out that Volvo's market capitalisation is less than 3 billion U.S. dollars, the actual purchase price may be less than 1.5 billion U.S. dollars.　　However, from the financial point of view, Geely's current market value of only more than 3 billion yuan, although it can be through private equity or local government loans to solve the problem of capital, but the acquisition of cultural integration, business risk and other issues for Geely is not a small challenge. Auto Expert Jianue pointed out that Geely to buy Volvo to succeed, first of all to meet the Ford, such as no layoffs, can not reduce investment, satisfied with the price of a series of conditions, after the successful acquisition will also consider how to ensure the normal operation of Volvo and whether the project can be successfully landed. As long as the acquisition has no final drop of Hammer, there will be many variables.　　And Ford's financial position has shown signs of getting better, not excluding Ford's chances of raising the sale.　　The independent auto analyst Bell is also not optimistic about Geely's bid for Volvo, which he believes has survived the most difficult period and will not offer a low-cost sale of the Volvo brand, which is now unacceptable to China's auto companies. "But the acquisition of Volvo is a shortcut for Geely to enter the European and American markets. "Jianue said. Zhong Shi also said that, whether successful or not, Geely should and develop practical strategies and plans for future cross-border mergers and acquisitions to accumulate experience.