According to Paul Tan's Automotive News Geely has secured over $2 billion
(US dollars) financing to complete its acquisition of Volvo from Ford Motor Company. Billionaire Chairman Li Shufu of Geely, China's biggest privately owned automaker, says the company has regulatory approvals to move forward with the deal. It was lack of Beijing approval that killed the Hummer deal for Sichuan Tengzhong.
At issue now is whether Geely will move Volvo production to China from Sweden. Plans are to double production to 300,000 vehicles per year. It seems highly unlikely Geely would mass produce Volvos in a country with one of the highest labor costs in the world, higher even than the US auto industry....
Labels: automobiles, chinese autos, foreign investment, foreign trade, free trade