CBS Investment

Chinese automobile corporation Geely Automobile Holdings has reached a preliminary agreement in buying Volvo from the American company Ford Motor Co. According to Chinese media, the value of the transaction will be no less than $ 3 billion. In case of success Geely will model Volvo XC90 at a factory in Guangzhou. According to expert opinion, the acquisition of Volvo will allow Geely to strengthen its positions in the markets of China and Europe.

Reports on the proposed sale of Volvo appeared last year. A number of buyers claimed for the Swedish company, most likely of which were automobile corporations of China and the consortium of European investors. Geely said earlier that it wanted to gain access to technology and the dealer network of Volvo.

The possibility of the bankruptcy of the German automaker Opel is still there. This statement was made by the Minister of Economy of Germany Gutenberg. “All of this can still happen” – he said. Previously, Karl-Theodor zu Gutenberg has repeatedly stated that the acquisition of the German automaker Opel by Magna International Inc. carries many risks, and bankruptcy may still be the best solution for this auto concern. On 30 May 2009, the German government reached an agreement with the American auto concern General Motors and the Canadian company Magna International, serving in partnership with the Sberbank of Russia on the salvation of the German automaker Opel.

The American auto giant asks his German «daughter» not for money, but for the agreement on investment. As reports Financial Times, referring to informed sources, GM can give the majority of stake of Opel and British Vauxhall, as well as of the Swedish brand Saab to an investor who will promise to invest at least 0.5 billion euros of his capital in the new European association. Opel and Saab can then join the group of companies, which will be located in Germany.

As the leadership of GM announced, Opel needs the assistance of European governments in the amount of about 3.3 billion euros, as well as a new investor for its survival. German automakers want to become an independent European joint stock company in which GM’s shares will be minimal. German Chancellor Angela Merkel has pledged to provide guarantees for the new investor. According to the head of GM Fritz Henderson, business GM Europe, 80% consisting of Opel, thanks to the introduction of eko premium is doing better than expected. Liquidation of GM in the European unit is likely to last until the end of the year.

In the midst of the global financial crisis, all eyes and all hopes of the world’s automotive industry are turned to the Shanghai auto show. This is not surprising, given that China is now one of the most promising automobile markets. Companies that suffer losses in their homeland, earn profits in China. Everywhere where a visitor looks at Shanghai motor show, there is continuous optimism. And despite the fact that auto giants worldwide suffer some losses, the situation is quite different in China. Whether it is Volkswagen, Audi, BMW, Daimler and General Motors – all just talk about the growth and increase of market shares. Head of Volkswagen Group Martin Vinterkorn emphasized that VW was committed to consolidate its position in China. According to him, his group wants to invest in the country of 1.6 billion euros until the end of 2010.