Todya Ford announced their plan to sell Volvo to Chineese car manufacturer Geely. This news was expecting to be announced for long time. For nearly three years, Ford was willing to sell Volvo but always denied this fact. As the financial pressure increased this strategy started to rise. As expected a Chineese manufacturer would buy the Volvo, this business deal between Ford and Geely is a milestone for Chinese automotive industry. By this way, Chinese jumped to luxury car maket with Volvo brand. Even though, Volvo is suffering serious problem in competition and could not keep up with Germans, Geely’s motivation to enter luxury market will play significant role in following years.
However; there is a very important fact, does Geely has enough know-how to compete with Germans? This is one of the main reason why Volvo lost its competition power as the Germans revealed much better cars with same safety features. Therefore, Geely should also find very intelligent engineers to increase the competition power Volvo brand.
As everyone is concerning, what will happen to platform sharing with Ford? Ford Focus and Volvo S40 are basically same cars and this means, Geely also bought the some of the Ford’s know-how!!!
Volvo promises future and right decisions would help to go back to good old days :)