Ford expects Volvo deal with Geely

This is good news for Ford as they will finally move on from the disastrous “Premium Automotive Group” dream of years gone by! But the bigger news in the aggressive Chinese auto firms that include Volvo suitor Geely Automotive. The Volvo move is another round of the Chinese building distribution in the North American market that should pay off big time when they hit the ground running. This whole market will change once the Chinese arrive!

From the Detroit News:

Ford Motor Co. today said it is close to finalizing a deal to sell its Swedish luxury brand, Volvo, to China’s Zhejiang Geely Holding Group Co.

In a statement released this morning, the Dearborn automaker confirmed that “all substantive commercial terms relating to the potential sale of (Volvo) have been settled,” but added that “some work still remains to be completed before signing — including final documentation, financing and government approvals.”

Geely released its own statement today — one that sought to reassure Volvo employees and the Swedish government.

Read the full article here.

  

Ford to invest $2.3 billion to modernize factories

With Ford continuing on their comeback streak they appear to be keeping the pedal to the metal with factory upgrades. Ford is reported to invest $2.3 billion in Brazil over the next five years to modernize factories and hopefully increase production. Ford is really making a move to re-establish themselves as one of the top auto companies going into the next decade.

From the Detroit News:

More than half of the money will be spent to expand production at the factory, which is Ford’s most advanced assembly plant in the world, and to modernize production at Troller Veículos Especiais S/A in Horizonte, Ceará, which Ford bought in 2007. The rest will be reserved for future product investments.

Ford spokeswoman Jennifer Flake said it represents the largest five-year investment in Ford do Brazil’s 90-year history.

“It will give us greater manufacturing flexibility,” she said.

Michael Robinet, vice president of global vehicle forecasting at CSM Worldwide in Northville, called the investment well-timed.

“It is an important market,” he said, adding that Brazilian consumers are becoming more sophisticated and are no longer satisfied with cast-off models from Europe and the United States. “Going forward, Ford knows that it will be a critical market for global platforms.”

Read the entire article here.


Photo from fOTOGLIF

  

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