Bye bye Volvo
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Serbian Steamer
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Bye bye Volvo
Ford Motor Company has just announced that all major terms relating to the sale of Volvo have been settled between Ford and Zhejiang Geely Holding Group Company Limited. That doesn't mean that all the Ts have been crossed on the deal, but it does indicate that Geely has met all of Ford's terms for the sale to be complete. Ford has issued a press release stating that a definitive sale agreement will be signed in the first quarter of 2010, while the final sale won't take place until Q2.
http://www.autoblog.com/2009/12/23/b...-on-volvo-sal/
http://www.autoblog.com/2009/12/23/b...-on-volvo-sal/
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I hate to see Volvo be sold, but I absolutely understand the reasons why. Volvo is living with one foot in the premium mrket and one foot out, and that is a tough place to be as Ford and Volvo have both discovered. To really find success with Volvo I think Ford would have to either bump Volvo down to a more mainstream level similar to brands like VW, or make it a proper, premium brand like BMW and Volvo. The latter would be very expensive and risky, while the former would be hard to justify since it would compete directly with Ford...particularly Ford of Europe. Throw in the reality that Ford already has a 'premium' brand that needs a lot of work in Lincoln, and the case for keeping Volvo becomes even more difficult to make.
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I hate to see Volvo be sold, but I absolutely understand the reasons why. Volvo is living with one foot in the premium mrket and one foot out, and that is a tough place to be as Ford and Volvo have both discovered. To really find success with Volvo I think Ford would have to either bump Volvo down to a more mainstream level similar to brands like VW, or make it a proper, premium brand like BMW and Volvo. The latter would be very expensive and risky, while the former would be hard to justify since it would compete directly with Ford...particularly Ford of Europe. Throw in the reality that Ford already has a 'premium' brand that needs a lot of work in Lincoln, and the case for keeping Volvo becomes even more difficult to make.
Just kidding!
...the euro spec version that is.
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Serbian Steamer
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Other available engines for 2011 Focus will be
1.0L 89 hp
1.0L EcoBoost 108 hp
1.6L 170 hp
1.6L 128 hp (diesel)
2.0L 168 hp (diesel)
2.0L 197 hp (diesel)
We will probably get 1.6L 170 hp only.
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Let's see just how un-safe the Chinese can make Volvo. Leaded paint? High VOC-emitting interior plastics? Inferior metals in the chassis/suspension? 
Kind of sickens me since it means they now have access to information on how to build real cars and don't have to work quite as hard at it in terms of technology and doing the research & development themselves. Probably make it easier to enter the US auto market this way too.
Kind of sickens me since it means they now have access to information on how to build real cars and don't have to work quite as hard at it in terms of technology and doing the research & development themselves. Probably make it easier to enter the US auto market this way too.
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Let's see just how un-safe the Chinese can make Volvo. Leaded paint? High VOC-emitting interior plastics? Inferior metals in the chassis/suspension? Kind of sickens me since it means they now have access to information on how to build real cars and don't have to work quite as hard at it in terms of technology and doing the research & development themselves. Probably make it easier to enter the US auto market this way too.
Kind of sickens me since it means they now have access to information on how to build real cars and don't have to work quite as hard at it in terms of technology and doing the research & development themselves. Probably make it easier to enter the US auto market this way too.
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Serbian Steamer
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Say what you want about Chinese cars, but they have $$$ to buy a company like a Volvo. Which none of Big 3 could do now, in fact, they have to sell it in order to survive.
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And FMC used to have enough to purchase anything under the sun (thanks Mr. Nasser!
) FMC doesn't need to sell Volvo to survive. It's not as if they are making a fortune off of the sale (though they may be poised to make more off of Volvo throughout the coming years.) The sale is just as much about Mulally's commitment to Ford, Lincoln and Mercury and the efforts need to make the core brands successful . . . . we'll we will see about Mercury.
Last edited by Evil_Capri; Dec 27, 2009 at 10:24 AM.
