Tuesday, March 30, 2010

Volvo bought by Chinese Firm

I know we normally cover brands that race however felt this news was to big to pass up posting here....

The venerable Volvo brand, known for reliability and safety, was sold yesterday by Ford Motor to a Chinese Conglomerate for $1.6 billion in cash and the rest in a payable note. The sale of this brand subsidiary is proof positive of China’s increasingly aggressive global strategy, and the shifting tides of dominance in the automobile business.

The Zhejiang Geely Holding Group is based in Hangzhou, and its majority-owned automotive subsidiary, Geely Automobile Holdings, is ranked #12 in overall production. Geely autos has made significant inroads manufacturing subcompacts and less expensive compacts – and now, it joins the big boys at the top.

The company is tightly controlled by founder, Li Shufu, a farmer’s son, who leveraged a motorcycle parts business into the successful and fast-growing company it is today.