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Geely Would Allow Ford to Keep a Volvo Stake

Chinese manufacturer Geely continues the fight for Volvo, this time with a slightly different takeover proposal. The company plans to take control of the majority stake in Volvo together with a Swedish company and, more importantly, to leave Ford, the current owner of the brand, a share in the Swedish unit for at least the next seven years.

The news was revealed by the Dagens Industri newspaper which also reported that Volvo could be valued at $2.8 billion to $4 billion.

The Swedish investor, who would partner with Geely for buying the majority stake in Volvo, is especially supposed to address concerns raised by Volvo employees who said that a Chinese owner would do no good to the company they work for.

"How could you expect a less experienced Chinese owner to turn Volvo around if even Ford failed to do so?” Magnus Sundemo, head of Volvo Car Corporation engineers union, was quoted as saying in July.

Media reports hinted that Geely initially agreed to pay around $2 billion for Volvo and bring a team of Chinese engineers to work with their Swedish colleagues on a number of projects. Recent rumors hinted that Geely even purchased a site in China to built a new Volvo plant in the domestic market that would handle production of a number of products.

But still, Geely doesn't know for sure if it is the one to buy Volvo. Ford is apparently planning to delay the sale of Volvo until General Motors gets rid of Opel and invite the losing suitor to bid for its Swedish unit.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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