What Volvo would gain from Geely deal
TEXT OF STORY
Bill Radke: Today, labor leaders in Sweden are pressing Chinese car maker Geely to say where it’s getting the financing for its bid to buy Volvo from Ford. The union is said to be concerned that the $2 billion deal is being backed by the Chinese government, and it worries about what that could mean for Swedish jobs. Marketplace’s Christopher Werth has that.
Christopher Werth: Public opinion in Sweden over the sale of Volvo is divided. Geely is one of China’s largest automakers, and many fear that Volvo’s precious safety technology will simply be exported to Asia, leaving factories in Sweden sitting empty.
But Hakan Matson of Sweden’s paper the Daily Industry says instead of viewing the deal as a smash and grab, Swedes should see Geely as a way for Volvo to break into emerging markets.
Hakan Matson: We have to be honest in Sweden too and understand that it’s been on sale since December last year, and no other manufacturer than the Chinese have shown interest. And Ford has really stated that they’re going to sell the company. It’s not like the situation with General Motors and Opel that they changed their mind.
Matson says that while Geely will be forking over less than a third of what Ford paid for Volvo 10 years ago, Ford has gained more than it’s lost. He says all of Ford’s top models use Volvo technology.
In London, I’m Christopher Werth for Marketplace.
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