Another Swedish Brand Succumbs
Hot on the heels of Saab’s likely demise, another iconic Swedish brand, Volvo, is to be sold to the Chinese.
Ford announced last week that agreement had been reached to sell its subsidiary, Volvo Cars, to China’s Geely Automotive for a reported $AUS 2.26 bn. (Ford acquired Volvo for $6.45 bn. US just ten years ago).
The deal is expected to be completed early in 2010, though the Swedish press are sceptical – and angered.
” How can a former refrigerator parts manufacturer with just ten years’ car manufacturing experience manage such a well known, quality, world – wide brand successfully? ” they ask.
But then China is now one of the leading car manufacturers in the World, rising from virtual obscurity a decade ago.
So is this the death knell for Volvo, or a new exciting development for the ‘safety first’ Swedish manufacturer?
Only time will tell.
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