Chinese Automaker Seems to be Ideal for Volvo   

Image by Bert van Dijk

Chinese Automaker Seems to be Ideal for Volvo   

Article by Joe Kent

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 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.

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.