New Geely has ample reasons to acquire Volvo

Shanghai, October 30 (Gasgoo.com) A month ago, Geely insiders told some reporters that it was going to acquire Volvo. At that time the media overwhelmingly believed that Geely's acquisition of Volvo would be nothing but a publicity stunt.

In fact, from the global auto industry and Chinese auto market perspectives, Geely's purchase of Volvo seems to be matter something much simpler. If the bid is successful, we do not have to worry about Volvo's development.

Since the last century, the Volvo brand has been transferred from one owner to another, but its position in people's minds has not changed. At least Geely -- its possible buyer this time, is a professional carmaker, rather than a trader.

For Geely to buy Volvo, money may be an obstacle, but will not be a permanent one. The biggest obstacles may exist in Geely and Volvo themselves: Geely's determination and strength, Volvo's pride and pragmatism. Renault's arrogance led to its divorce from Volvo, whose car brand was then sold to Ford Motor. Volvo admitted it was a large company of a small country, which means that when the economic crisis occurs and Sweden is unable to feed a big company, Volvo will definitely embark on the road for sale. 

This time amid the global economic crisis, Sweden and the United States have met with problems and must find new buyers for Volvo. Ford will not care about Volvo after benefitting from selling Jaguar and Land Rover brands, and becoming the only bankruptcy-free carmaker of the U.S. Big Three, and now Ford, who has been seeking another opportunity, finds Geely is the most suitable buyer of Volvo!

Where Volvo is concerned, what can support the cash flow is not the acquisition fund but the future market, The BRIC (Brazil, Russia, India, China) markets are the final options, and of these markets, China is the largest, most mature, most stable one. These factors determine that only China is a suitable destination for Volvo.