Geely car brand Volvo bid for the first time admitted
 
Core Tip: Geely Automobile Chief Executive Officer September 8, said Geely is involved in acquisition of Volvo’s stake in some of the work, which is the first official recognition of Geely bought Volvo. As previously reported, Gillie proposed purchase price of 160 billion to 20 billion yuan between. The industry believes that acquisition of Volvo disadvantages than advantages of Geely.

September 9, Guangzhou Daily reported that Geely Automobile Chief Executive Officer and Executive Director Gui Yue told reporters in Hong Kong yesterday, Geely’s parent company is involved in acquisition of Volvo’s stake in some of the work. This is the first official Geely respond positively to the takeover rumors.

Yesterday, the domestic auto brand stands for Geely Automobile senior interim results in Hong Kong to attend conference for the first time publicly that Geely in the United States is involved in acquisition of high-end Ford’s well-known Swedish car brand Volvo. It is reported that the acquisition is based on the parent company level operations unlucky. But in the industry believe that the acquisition is extremely difficult Volvo, Ford to a good performance this year is expected to continuously improve the bid.

Geely Automobile Chief Executive Officer and Executive Director Gui Yue told reporters in Hong Kong yesterday, as far as he knew, Geely’s parent company is involved in acquisition of Volvo’s stake in some of the work. This is the first official Geely respond positively to the takeover rumors.

Gui-Sheng Yue said that according to the current market value of the Geely Group, he believed that the ability on its own is very difficult to implement the acquisition, and therefore he believed that the parent company in the United Nations unusual industry, with investment a greater chance of the nature of the company’s co-operation. But he has not disclosed which has found a joint acquirer.

In Hong Kong-listed Geely Automobile earlier statement, there is no brewing acquisition of Volvo plans. Gui-Sheng Yue explains, as listed companies up to now no plans to participate, so there is no need to prepare relied on to make money. He pointed out that the Geely Group will not be in the production of motor vehicle parts and listed companies constitute the internal competition, also known as “at the right time” will be producing parts of motor vehicles into the listed company.

According to the Swedish local media earlier reported that Geely is the only bidder that the proposed purchase price of 160 billion to 20 billion yuan between Sweden’s official retirement fund or participate in joint Geely. However, the Government of Sweden that the auto industry should be fully competitive, the Government has no intention of supporting the fund to buy Volvo shares.

“Ford’s decision to sell Volvo assessment has not changed.” Yesterday, Ford contacts in China, told this newspaper that is not easy to comment on the auspicious position.

In the industry that: more than auspicious acquisition of Volvo disadvantage

While Geely’s grand ambitions, but yesterday, this newspaper obtained a PricewaterhouseCoopers to domestic automobile enterprises the opportunity to acquire high-level U.S. report makes clear that Volvo’s acquisition of several major disadvantages.

Ford is the only three major U.S. car prices do not give material assistance to the U.S. authorities, but this year, sales have been warming up as the U.S. auto market overtake GM. “Ford is currently no Shuaimai pressure.” Reported that the newly appointed CEO was considered restructuring expert, so Ford is likely to sell Volvo to defer until its becomes more attractive.

Additionally, you may need to further invest in research and development of new models, especially the more fuel-efficient models. Volvo’s European operations are also signs of recession, and earlier this year because of the quality and safety considerations there was a major product recall. PwC also reminded domestic enterprises, need to know about Volvo’s other potential liabilities, such as pensions, financial leverage.

In recent years, has been producing low-end models Geely constantly want to upgrade product grades, founder Li Shufu has said that he would no longer produce less than 4 million of motor vehicles, but also created this year, pushing the new flagship high-end brands.

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