Will Volvo add luster to Chinese carmaker?

Shanghai, June 24 (Gasgoo.com) Many Chinese automakers, including Geely Auto, have expressed an interest in buying the Swedish brand Volvo from Ford Motor.

As we know, Chinese carmakers are eager to boost their reputation for high quality or safety. But would buying a brand renowned as one of the world's safest cars add any luster or fame to a Chinese automaker?

Car consumers care only whether "the new Volvo keeps delivering what it promises," says Paul McCarthy, automotive transaction services strategy leader at PricewaterhouseCoopers. "That will be the biggest challenge for the Chinese buyers."

Although China's auto technology has progressed in recent years, its automakers are still far from the international benchmarks. This urges these car companies to retool and upgrade themselves by using the technologies of global carmakers.

"Usually, the lower-quality acquirer would improve the overall quality by adopting new technologies from the acquired company, which is usually one key incentive for such mergers to happen," McCarthy says.