Thursday, January 14, 2010

Geely Assets from Volvo

CHINA - The process of acquisition of Volvo by Geely still going on and reported a step. Although no official price determination, what assets will be obtained by China's car manufacturers are?

Citing chinacartimes.com (1/11/2010), Volvo sales price of the property to the Ford Geely estimated between 1.5-2 billion renminbi (about USD 2.68 trillion). Of negotiations the two brands, Geely will acquire assets Volvo, among others, nine variants of the Volvo products, namely S40, S60, S80, C70, C30, XC90, XC60, V50, and V70.

Likewise, the three types of car product platform, which is P1 for compact cars, P2 (larger vehicles), and P24. Furthermore, the marketing network of 2000 dealers around the world, the distribution chain, and finally the Volvo brand itself.

List of assets that offer fairly remarkable. The reason, Geely could change the status of the local car manufacturers China becomes world class in just one night. With capital from Volvo, Geely hopes will be able to sell as many as 2 million cars a year within four to five years.

Currently, Volvo sales in the world car market is only about 400,000 units. In the China market last year, sales of even only about 13,000 units. From business strategy, Geely will be able to target only gain ownership in one year and reach break even in 2015 ducks.

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