Volvo Engineers Union: Geely Will Do No Good

Even if Geely tries its best to purchase Volvo, it might seem that taking over the Swedish brand is much more difficult than initially believed. Not only because Geely struggles to comply with government requirements but also because Volvo's engineers union are repulsing the acquisition, saying that the Chinese automaker would do no good to the company.

According to a report by the Swedish publication Dagens Industri and cited by gasgoo.com, Magnus Sundemo, head of Volvo Car Corporation engineers union, said the company would benefit more under the ownership of an European manufacturer, mostly because it would be much more experienced than a Chinese company.

"How could you expect a less experienced Chinese owner to turn Volvo around if even Ford failed to do so?” Sundemo was quoted as saying by the aforementioned source.

Recent media reports claimed that Geely has offered $2 billion for Volvo but things are still kept secret as the Chinese are repeatedly denying they are interested in buying the Swedish brand. Back in mid-June, Chinese media reported that Geely has already received the support of the Dongying government so the deal might be completed faster that one would expect.

"The company has not submitted, and has no plans to submit, any bids concerning the takeovers of 'Volvo' or 'Saab' as stated in recent press articles," the company said in April. "We don't have plans to buy Volvo as some media have reported," a Geely spokesman added at that time.

In case the deal goes through, Geely will bring its own engineering team to work alongside Volvo's employees. Additionally, the company might transfer a part of the production in China and sell some of the models produced by Volvo in the domestic plants in China.