Geely brand will be closed by 2012

Geely’s bosses announced last week that they will waive that mark by 2012. Chinese Corporation will not give up, however, the production cars, Geely brand waiver is only a marketing position to hand over the sub-brands Gleagle, Englon and Shanghai Emgrand to promote in China and international.

Emgrand brand is the luxury division of Geely, while Gleagle is Chinese world brand name and an acronym for Global Eagle.

Market withdrawal of Geely brand will be complete with moving Freedom Ship, Yuan Jing to Gleagle and moving King Kong and Golden Eagle to Shanghai Englon.

Once completed this marketing maneuver, the Chinese will be ready to close Geely. It is unclear whether Geely corporate name will be changed or not.

The changes made in Geely structure doesn’t affect Volvo, which has just been bought by Chinese.

Changes in the Geely brand refers particularly to the Chinese market. Thus, Chinese automobile manufacturer wants to increase its number of branches and increase profitability of existing dealers.

The quality of repairs will be also increased in the hope of loyalty to existing customers. Under-performing dealers will be removed from Geely network to avoid losses.

Volvo slightly exceeded YouTube acquisition four years ago

To get an idea, almost four years ago, Google was snapping up YouTube for $1.65 billion, brushing aside copyright concerns to seize a starring role in the online video revolution.

Geely and Ford officials have now completed the transaction by which the Swedish manufacturer Volvo goes under the patronage of the Chinese.

Ford dropped Volvo for the amount of 1.8 billion dollars, less than one third of the amount paid in 1999. The money will be transferred to accounts by the end of 2010.

Following the transaction, Stephen Odell, Volvo’s chief executive will take the lead of Ford Europe Division, and Li Shufu, Geely chairman, will become head of Swedish manufacturer.

Although Volvo has left the Ford’s protecting wing, the American manufacturer is willing to continue providing powertrains, vehicle components and the IT support required.

“Volvo is an excellent brand with a strong product line, and it has returned to profits after a successful restructuring. We are confident Volvo has a solid future under Geely’s ownership,” said Alan Mulally, Ford’s president and CEO.

“At the same time, the sale of Volvo will allow us to sharpen our focus on the Ford brand around the world and continue to deliver on our One Ford plan serving our customers with the very best cars and trucks in the world,” he added.

Li Shufu, Geely chairman, said “The signing and completion of this acquisition reflects the commitment of Ford and Volvo executives to the future of this company, along with the vital input of labour representatives and government officials in Sweden, Belgium and China as well as other relevant countries”.

Volvo will be sold to Geely

Chinese Vice President Xi Jinping will arrive this weekend in Sweden to discuss with representatives of the North-European state the final details related to crossing Volvo in the portfolio of the Chinese manufacturer Geely.

If the business will be closed, buying the brand Volvo will become the largest car deal in China’s history, total costs reaching two billion dollars.

Volvo representatives confirmed the visit of the Chinese State man, sources inside of the North manufacturer announced that the deal will be officially announced in a ceremony which will take place on Sunday.

Zhejiang Geely, announced that Volvo’s main target will be achieving profit by 2011 by building new factories in China and by doubling the annual production.

Currently, the only barriers to a deal between Ford and Geely about sale Volvo are the protests of the Volvo union workers in Sweden, who are frustrated that until now have not received any information regarding the Volvo needs in post-sale period, the number and name of the investors behind the deal and the company’s management.