Ford and Geely IP Rights Deal Goes Through

Zhejiang Geely Holding Group and Ford Motor Co have finally agreed on the intellectual rights concerning the Volvo deal, said a Geely spokesman located in Europe. This agreement will help finalize the takeover, as this was a major problem in Geely’s attempt to buy Volvo from Ford.

According to the same spokesman, when the sale will be finalized, the Chinese will get their hands on all of the technologies developed by the Swedish car manufacturer. The agreement also states that Volvo will continue to have access to all Ford technologies crucial to future development of the brand, including safety and environmental protection.

Taking into consideration that discussions about intellectual rights have been finalized and Ford’s statement that Zhejiang Geely Holding Group, the parent of Geely Automobile Holdings, is its favorite bidder for Volvo, it might be safe to say that the deal will be soon closed.

Hopefully, Volvo will not have the same faith as it’s Swedish sister Saab, who’s deal with Koenigsegg and Chinese automaker Beijing Auto went south when everything seemed to be in the clear.

Intellectual rights have always been an issue in each Chinese attempt to take over a foreign automaker. Back in July, Beijing Auto said that this was the reason their deal with General Motors regarding the Opel brand did not go through. It is very clear now that a lot of Chinese automakers are set on breaking into foreign car markets and it seems that the recession is the perfect opportunity to do so.