Re: Another nod to China for Volvo's future... (Walter Nash)
That is not news at all. and doesnt give any clue as to who will end up buying Volvo.
That is not news at all. and doesnt give any clue as to who will end up buying Volvo.
Another nod to China for Volvo's future...
1 - 19 of 19 Posts
Re: Another nod to China for Volvo's future... (VolvoD)
That is not news at all. and doesnt give any clue as to who will end up buying Volvo.
It is not labeled as a "news" piece, rather as an op-ed piece. My read of it is that is pretty clearly does say who may end up with Volvo. See
http://www.chinacarforums.com/....html
That is not news at all. and doesnt give any clue as to who will end up buying Volvo.
It is not labeled as a "news" piece, rather as an op-ed piece. My read of it is that is pretty clearly does say who may end up with Volvo. See
http://www.chinacarforums.com/....html
Re: Another nod to China for Volvo's future... (Walter Nash)
Reading that makes me feel like my two year old, who has just put a handful of cat barf in her mouth!!
Reading that makes me feel like my two year old, who has just put a handful of cat barf in her mouth!!
This Today From Automotive News
Chery won't fight bidding war for Volvo
Douglas A. Bolduc
Automotive News Europe
March 19, 2009 07:45 CET
China's Chery Automobile Co. remains interested in buying a foreign car brand such as Ford Motor Co.'s Volvo but refuses to get into a bidding war with rivals, the company's chief executive told Reuters today.
"We may consider a takeover if no one -- no other Chinese automakers -- are interested. We won't fight for it," Chery Chairman Yin Tongyao said at a car launch in Wuhu, China.
Chery is among a few Chinese automakers that have expressed an initial interest in auto brands that have been put up for sale by their cash-strapped owners.
According to media reports, Chinese carmakers Changan Automobile and Geely Auto have expressed interest in Volvo.
Geely denies it plans to acquire Volvo.
Volvo is appealing to the Chinese because it is doing relatively well in the country.
Volvo sold 13,000 cars in China last year, which accounted for roughly 8 percent of its global sales. That figure will rise to close to 10 percent this year, Alexander Klose, chief executive of Volvo Car China, said earlier this month at the launch of the S80L in China.
Volvo's flagship sedan is produced by a joint venture with Chang Automobile, Mazda Motor and Ford.
Ford, which posted a record $14.7 billion net loss last year, has said it will carry out a strategic review of the Volvo brand, including the possible sale of the Volvo unit.
Chery won't fight bidding war for Volvo
Douglas A. Bolduc
Automotive News Europe
March 19, 2009 07:45 CET
China's Chery Automobile Co. remains interested in buying a foreign car brand such as Ford Motor Co.'s Volvo but refuses to get into a bidding war with rivals, the company's chief executive told Reuters today.
"We may consider a takeover if no one -- no other Chinese automakers -- are interested. We won't fight for it," Chery Chairman Yin Tongyao said at a car launch in Wuhu, China.
Chery is among a few Chinese automakers that have expressed an initial interest in auto brands that have been put up for sale by their cash-strapped owners.
According to media reports, Chinese carmakers Changan Automobile and Geely Auto have expressed interest in Volvo.
Geely denies it plans to acquire Volvo.
Volvo is appealing to the Chinese because it is doing relatively well in the country.
Volvo sold 13,000 cars in China last year, which accounted for roughly 8 percent of its global sales. That figure will rise to close to 10 percent this year, Alexander Klose, chief executive of Volvo Car China, said earlier this month at the launch of the S80L in China.
Volvo's flagship sedan is produced by a joint venture with Chang Automobile, Mazda Motor and Ford.
Ford, which posted a record $14.7 billion net loss last year, has said it will carry out a strategic review of the Volvo brand, including the possible sale of the Volvo unit.
in the chinese press, the Chinese government has 4 bids to approve/allow to bid for Volvo. Dongfeng's business plan was rejected and they need to resubmit. The government doesnt want the 4 companies bidding against each other so is going to decide which of the 4 is best placed to bid/own volvo. So far, it seems Chery is the best placed (biggest manufacturer in China) but Changan have a good case as they already work with Volvo.
The goverment is also keen to merge the total of 25 car brands in the future. We have seen this before in the free market in the US, UK, Europe etc where the field starts merging and ends up with a few bigger players. Best for Volvo to be part of a company that will merge/buy/takeover other smaller companies rather than have its parent company bought/merged with someone else.
This story fits info from the Chinese government that there wont be a bidding war between the 4 Chinese brands.
My thoughts and preference are on Chery given their position of the largest Chinese manfacturer and the fact they are already ahead in terms of exports etc.
Of course there are concerns with buyouts. But, to remind people, look how Mercedes treated Chrysler (and they are a Western company) anf Ford themselves have 'used' Volvo for bodyshell and safety systems. They have learnt volvo secrets etc and now sell the company. so, also guilty of mistreatment.
Dont forget Volvo AB's planned small stake in Volvo Cars too.
The goverment is also keen to merge the total of 25 car brands in the future. We have seen this before in the free market in the US, UK, Europe etc where the field starts merging and ends up with a few bigger players. Best for Volvo to be part of a company that will merge/buy/takeover other smaller companies rather than have its parent company bought/merged with someone else.
This story fits info from the Chinese government that there wont be a bidding war between the 4 Chinese brands.
My thoughts and preference are on Chery given their position of the largest Chinese manfacturer and the fact they are already ahead in terms of exports etc.
Of course there are concerns with buyouts. But, to remind people, look how Mercedes treated Chrysler (and they are a Western company) anf Ford themselves have 'used' Volvo for bodyshell and safety systems. They have learnt volvo secrets etc and now sell the company. so, also guilty of mistreatment.
Dont forget Volvo AB's planned small stake in Volvo Cars too.
Re: (Shimon)
The difference is that Ford provided Volvo with both funding and out-of-house Ford and Mazda technology, platforms and co-development.
The Chinese are going to give them... what?
| Quote, originally posted by Shimon » |
| in the chinese press, the Chinese government has 4 bids to approve/allow to bid for Volvo. Dongfeng's business plan was rejected and they need to resubmit. The government doesnt want the 4 companies bidding against each other so is going to decide which of the 4 is best placed to bid/own volvo. So far, it seems Chery is the best placed (biggest manufacturer in China) but Changan have a good case as they already work with Volvo. The goverment is also keen to merge the total of 25 car brands in the future. We have seen this before in the free market in the US, UK, Europe etc where the field starts merging and ends up with a few bigger players. Best for Volvo to be part of a company that will merge/buy/takeover other smaller companies rather than have its parent company bought/merged with someone else. This story fits info from the Chinese government that there wont be a bidding war between the 4 Chinese brands. My thoughts and preference are on Chery given their position of the largest Chinese manfacturer and the fact they are already ahead in terms of exports etc. Of course there are concerns with buyouts. But, to remind people, look how Mercedes treated Chrysler (and they are a Western company) anf Ford themselves have 'used' Volvo for bodyshell and safety systems. They have learnt volvo secrets etc and now sell the company. so, also guilty of mistreatment. Dont forget Volvo AB's planned small stake in Volvo Cars too. |
The difference is that Ford provided Volvo with both funding and out-of-house Ford and Mazda technology, platforms and co-development.
The Chinese are going to give them... what?
Re: (Triggerguy)
Capital.
| Quote, originally posted by Triggerguy » |
| The Chinese are going to give them... what? |
Capital.
Re: (Munin)
KEEP IT SWEDISH SILLY
KEEP IT SWEDISH SILLY
Re: (Munin)
The Chinese (if they bid) will bid way under what anyone else will bid in an attempt to lowball the deal. Notice how the Chinese govt. is only going to allow one Chinese firm to bid???? Nothing like limiting the field of potential bidders....
| Quote, originally posted by Munin » |
Capital. |
as above the Chinese bring/offer volvo greater funding for new products, R&D etc.
Re: (Shimon)
Pffft.
Yeah greater R&D??? For what cheaper ways to make their product so its lasts 1/4 the time, and have it produced in a factory that has no environmental standards.
They can't make milk without trying to make it cheaper and by doing so harmed their own people!
| Quote, originally posted by Shimon » |
| as above the Chinese bring/offer volvo greater funding for new products, R&D etc. |
Pffft.
Yeah greater R&D??? For what cheaper ways to make their product so its lasts 1/4 the time, and have it produced in a factory that has no environmental standards.
They can't make milk without trying to make it cheaper and by doing so harmed their own people!
Re: (Shimon)
There are reports and articles that are noting how these Chinese automakers are needing to borrow money just to simply buy foreign assets and companies, some of them borrowing money from the Chinese government. So how is it guaranteed that they're going to provide Volvo with adequate capitol or funding?
| Quote, originally posted by Munin » |
Capital. |
| Quote, originally posted by Shimon » |
| as above the Chinese bring/offer volvo greater funding for new products, R&D etc. |
There are reports and articles that are noting how these Chinese automakers are needing to borrow money just to simply buy foreign assets and companies, some of them borrowing money from the Chinese government. So how is it guaranteed that they're going to provide Volvo with adequate capitol or funding?
Re: (avolvofan)
Um, I'm not sure if you know how this works, but usually when there are multiple bids for a company, it does not go to the lowest bidder...
The Chinese companies have capital, which is why they're in the running despite many other shortcomings.
| Quote, originally posted by avolvofan » |
The Chinese (if they bid) will bid way under what anyone else will bid in an attempt to lowball the deal. |
Um, I'm not sure if you know how this works, but usually when there are multiple bids for a company, it does not go to the lowest bidder...
The Chinese companies have capital, which is why they're in the running despite many other shortcomings.
Re: (Triggerguy)
I'm not familiar with these reports (and would appreciate an example), but if they have the ability to borrow, that's a competitive advantage in and of itself in today's market.
| Quote, originally posted by Triggerguy » |
| There are reports and articles that are noting how these Chinese automakers are needing to borrow money just to simply buy foreign assets and companies, some of them borrowing money from the Chinese government. So how is it guaranteed that they're going to provide Volvo with adequate capitol or funding? |
I'm not familiar with these reports (and would appreciate an example), but if they have the ability to borrow, that's a competitive advantage in and of itself in today's market.
Re: (Munin)
Earlier this year, there were number of articles of a pointing out that some of the automakers either needed to or have already taken out loans to buy foreign assets for the purpose of expansion, including some companies from the government, mainly Geely. I'm having trouble searching for them because they're coddled up with all the other China articles.
These companies will have to repay back this money. The thing is money is all they have to give to Volvo (them providing Volvo with tech or management would NOT be ideal). Even then, this cast doubts on whether they are capable of generating their own capital without the need for more loans, i.e. a Big 3 situation. Tata is already in trouble because they are needing a serious influx of cash just to run J/LR. Plus, I'm not sure how Volvo customers would take the fact that their car was virtually subsidized by the Chinese government (depending on which company purchases the brand).
This is also what I have a problem with.
http://www.pmbventures.net/ind...d=136
Modified by Triggerguy at 12:24 AM 3-24-2009
| Quote, originally posted by Munin » |
I'm not familiar with these reports (and would appreciate an example), but if they have the ability to borrow, that's a competitive advantage in and of itself in today's market. |
Earlier this year, there were number of articles of a pointing out that some of the automakers either needed to or have already taken out loans to buy foreign assets for the purpose of expansion, including some companies from the government, mainly Geely. I'm having trouble searching for them because they're coddled up with all the other China articles.
These companies will have to repay back this money. The thing is money is all they have to give to Volvo (them providing Volvo with tech or management would NOT be ideal). Even then, this cast doubts on whether they are capable of generating their own capital without the need for more loans, i.e. a Big 3 situation. Tata is already in trouble because they are needing a serious influx of cash just to run J/LR. Plus, I'm not sure how Volvo customers would take the fact that their car was virtually subsidized by the Chinese government (depending on which company purchases the brand).
This is also what I have a problem with.
http://www.pmbventures.net/ind...d=136
Modified by Triggerguy at 12:24 AM 3-24-2009
Re: (Munin)
Um, I'm not sure if you know how this works, but usually the Chinese don't put up their own money when they buy something....
As others have posted, Chinese companies that branch out beyond the borders of the PRC have had some challenges replicating what worked for them in the PRC. Typically the PRC is a protected market, government subsides of one sort or another, and they had a contract that they were fulfilling. Playing in the global competitive market is not something that Chinese companies have a lot of experience with.... China has amassed its $1+ Trillion trade surplus through the pursuit of a mercantilist trade policy that is focused on labor cost arbitrage. That won't replicate outside of the PRC....
| Quote, originally posted by Munin » |
| Um, I'm not sure if you know how this works, but usually when there are multiple bids for a company, it does not go to the lowest bidder... The Chinese companies have capital, which is why they're in the running despite many other shortcomings. |
As others have posted, Chinese companies that branch out beyond the borders of the PRC have had some challenges replicating what worked for them in the PRC. Typically the PRC is a protected market, government subsides of one sort or another, and they had a contract that they were fulfilling. Playing in the global competitive market is not something that Chinese companies have a lot of experience with.... China has amassed its $1+ Trillion trade surplus through the pursuit of a mercantilist trade policy that is focused on labor cost arbitrage. That won't replicate outside of the PRC....
Re: (avolvofan)
How is this relevant? They can bring capital: the market doesn't care where it comes from.
According to Reuters, Geely is buying Drivetrain Systems in Australia. I guarantee you they didn't get there by being the lowest bidder.
| Quote, originally posted by avolvofan » |
Um, I'm not sure if you know how this works, but usually the Chinese don't put up their own money when they buy something.... |
How is this relevant? They can bring capital: the market doesn't care where it comes from.
According to Reuters, Geely is buying Drivetrain Systems in Australia. I guarantee you they didn't get there by being the lowest bidder.
1 - 19 of 19 Posts
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