Daily Auto News Volvo Sale Hits Snag
Daily Auto News
Ford had hoped to complete the sale of its Volvo brand to Geely, a Chinese company, by March 31. Now, reports indicate that the deal may have hit a roadblock. Since GM’s sale of Saab turned into a virtual soap opera of near-death and last-minute deals, it makes you wonder if anyone can sell a Swedish car brand without drama.
Reuters reports, “Zhejiang Geely Holding Group chairman Li Shufu indicated talks to buy Ford’s Volvo car unit had hit a snag.”
In contrast to other attempted brand sales to Chinese companies (we’re looking at you, Hummer), this time the problem isn’t on the Chinese side. It’s on Ford’s.
The Wall Street Journal says that Shufu “indicated the talks have hit a snag because of unspecified problems at Ford.” The Journal quotes Shufu as saying that Geely has “done everything [it] can to prepare for the deal in accordance with the framework agreement,” The Journal adds, “The ball is now in Ford’s court, he indicated.”
So what’s the mysterious snag? Left Lane News reports, “It remains to be seen what is causing the hiccup, but it doesn’t appear to involve Geely’s financing or regulatory requirements. While yet to be confirmed, technology sharing seems like the most likely reason for the holdup.”
Reuters adds that a Geely spokesperson said “that the company’s aim to sign a sales and purchase agreement by the end of March and complete the deal in the second quarter had not changed.”
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