Will the sale of Volvo to a Chinese automaker ruin the status/ quality of the iconic Swedish brand?
Ford has sold Volvo to Chinese automaker Zhejiang Geely Holding Group, based in Hangzhou, for$1.8 billion. Far less than teh $6 billion Ford paid back in 1999. How will this sale affect the value of the Volvo brand? Are they doomed or is this a positive move?
The Chinese have yet to prove that they can make quality cars, so in my opinion Volvo has made a mistake. Volvo is known for its quality and safety, which is not a synonym for current Chinese products. No offense to the Chinese people.
Volvo was once a viable niche brand with a good reputation. Now that the world economy has been in decline for many years due to overpopulation and resource depletion, fewer and fewer niche makers will survive. Volvo's viability was in question years ago, which was why Ford bought it in the first place. Ford was lucky to find another company to unload Volvo onto. Now China is going to make them? Volvo is already dead. It will take some time, but its corpse will return to the earth.
As time has passed it appears that Geely will still keep the Manufacturing of Volvo local. Apparently In China Volvo is regarded as a Luxury vehicle and that is why Geely purchased it in the first place !
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