Chery to bid on Volvo?

[AiR]

I tried to just snatch a part of the article but since it's chinese I figured I'd just copy it all and they wouldnt mind. Excuse the horrible layout, it's a 1:1 copy.

Originally Posted by CaiJing

China's independent auto manufacturer is plumbing banks and private equity firms in preparation for a buyout of Volvo.

By staff reporter Ouyang Changzheng

Chery, one of China’s fastest growing auto manufacturers, is weighing a plan to buy Volvo from the trouble-ridden Ford.

Sources from Chery told Caijing that the plan is still in its infancy, and Chery’s management hasn’t reached an agreement, nor has it sent a report for approval to the Anhui government.

Jin Yibo, assistant to Chery’s CEO, ruled out the possibility at an interview with Caijing.

But sources confirm that Chery has been in contact with banks and private equity firms about financial support for a potential buyout. Industry insiders estimate that Volvo might cost Chery more than 30 billion yuan.

Established in late ‘90s by local government of Wuhu, Chery produces several lines of passenger cars. The company plans go public in Shanghai in late 2009.

Financial analysts think that buying Volvo would raise Chery’s debt to equity ratio and cast some negative impacts on its planned IPO. They suggest Chery partner with several private equity firms and launch a joint acquisition.

Despite rumors that Ford would spin off the Volvo brand, Xu Guozhen, Ford China’s deputy chairman denied that information and refused to comment on the plans of Chinese domestic auto manufactures.

1 yuan = US＄ 0.14

http://www.caijing.com.cn/20080707/73373.shtml

[Karoug]

I really hope that won't happen!

[Blind_Io]

If this happens it will be the death of Volvo.

Honestly, Volvo is a company founded on safety. The Chery cars fold like a dime-store accordion if someone looks at them cross-eyed.

[vikiradTG2007]

No. Please. No. Please, FOR THE LOVE OF GOD AND ALL OF HUMANITY, NO!!!!!

[TopGearDog]

Good riddance Volvo

[Lilleput]

Would Volvo even accept a bid from them? It would be like Iveco buying Ferrari..

[phuckingduck]

As a Volvo owner:
NOOOOOOOOOOOOOOO

[Cobol74]

Er this can't be a good omen can it?

[Gatecrasher]

KEEP YOUR MITS OFF MY FREAKIN' CAR!!!

[Spectre]

YES! YES! Volvo owners need to feel the pain of incompetent leadership, too. :LOL: :LOL:

This is why the generally European practice of badge snobbery is stupid - because anyone with a truckload of cash can buy a badge.

[argatoga]

Originally Posted by Spectre

YES! YES! Volvo owners need to feel the pain of incompetent leadership, too. :LOL: :LOL:

So you believe that Nasser and Billy Jr. weren't incompetent?

[Spectre]

Compared to the slash-and-burn they did at Jaguar? Yes.

Over at Jaguar, they ran off the competent management, most of the stylists, almost all the engineers... pretty much anyone who wasn't a brownnosing idiot.

Volvo they pretty much left alone and didn't cause it to sell egregious character violations.

Originally Posted by Lilleput

Would Volvo even accept a bid from them? It would be like Iveco buying Ferrari..

They don't have a choice. Volvo is owned by Ford. The Ford shareholders are screaming for blood and demanding (rightfully, to a large degree) that Ford end it's "European acquisition adventure" and get back to the core business. Anything and everything that isn't core Ford business is up for sale.

[Programme]

How would this be different from Tata buying Jaguar? An Asian car manufacturer largely known for cheap motoring buying a European marque? Granted, I don't think I would be happy if I were a Volvo owner and it were true, but it has happend before.

Originally Posted by Lilleput

Would Volvo even accept a bid from them? It would be like Iveco buying Ferrari..

Iveco and Ferrari are both part of the Fiat Group, or am I missing something here?

[Dsemaj]

Originally Posted by Programme

How would this be different from Tata buying Jaguar?

Well, atleast Tata are somewhat reputable. All that Chery seems to make is ripped off, ugly, poorly made, undeveloped (and some) stolen rubbish. It wouldn't do great for Volvo's image.

EDIT: Just found this on the Chery website

Riich II adopts the design of separating the engine area from the cab

Wow, you mean I could have a car where the engine isn't sitting in the interior with me?

[Lilleput]

Originally Posted by Programme

Iveco and Ferrari are both part of the Fiat Group, or am I missing something here?

Im not that big a nerd and did not know that.

[AiR]

Originally Posted by Programme

How would this be different from Tata buying Jaguar? An Asian car manufacturer largely known for cheap motoring buying a European marque? Granted, I don't think I would be happy if I were a Volvo owner and it were true, but it has happend before.

I agree, of course we have yet to see how Tata manages Jaguar in the long run but in principle this would be just another takeover. Remember what position KIA was in some 20 years ago... Chery could do the same if they wanted, and skip a step in the process by having access to a respected brand.

Anyhow these rumors, regardless of their substance, make for good discussion around the lunch table.

[WillDAQ]

As that CEO X5 rip off proves the one thing that the Chinese suck at is the innovative design stage of product development, so why not buy an organisation that can.

Normally we think of companies subcontracting down the supply chain, this is doing it in reverse!

[BlaRo]

So if Chery starts building Volvos...their cars will be merely as safe as any other car.

[TheGregster]

If Chery buys Volvo I will sell my S60 T5 the same day.

[Gatecrasher]

If Ford wants some more money they should make another F1 engine that lasts 10 years and notches 100 GP victories...not that they're capable of that anymore.