Ford Motor reached an agreement on Sunday to sell its Volvo subsidiary to a Chinese conglomerate, in the clearest confirmation yet of China’s global ambitions in the auto industry.
Sunday, March 28, 2010
Chinese Company to Buy Volvo
Subscribe to:
Post Comments (Atom)
I'm not sure how to look at this obviously Ford is struggling and selling a branch is both a good thing and a bad thing. If you can't afford it sell it, hopefully they will be able to keep the jobs where they are for the most part. It will be interesting to see how they go about this acquisition.
ReplyDeleteChina's attempt to buy Volvo is another indication that China is emerging as a global super power. Over the past few years we have seen China's desire to buy many plane makers share. On the other side of the coin this also shows Ford's irresponsiblility on handling the brand as a whole. This should be a good step forward for China, surely for Ford this is not a good sign.
ReplyDeleteGoing off of what Taimur said, I have to agree. I was reading about how after every major recession there has been a period of deleveraging, and can't help but think that's what's going on here. While I haven't looked at Ford's statements currently many companies are selling assets to pay off debt and we know for a fact Ford has taken a lot of hits.
ReplyDeleteThey sold if for around 2 billion dollars, I wonder if this will have an impact for the future of Ford in what they will build and if they will create a new line of cars. This is probably good for the company to bring in cash due to the past couple hears being horrible for them.
ReplyDeleteI am really surprised to see Volvo being sold to China. I knew of its' widespread popularity in Europe and of course of Ford's struggles recently however this is a very significant move for the Chinese. Especially considering the sometimes questionable craftsmanship that occurs there, this will be a significant stepping stone if they are successful in maintaining Volvo's quality.
ReplyDelete