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Volvo Finally Goes Chinese
News has just come through that Volvo is finally going Chinese after months of speculation.
It has just been formally announced that the other iconic Swedish car maker has been sold by its current owner- The Ford Motor Company- to Geely of China, but at a huge loss to Ford.
They purchased it twenty years ago for nearly ten billion dollars, but will collect just over four billion dollars from Geely, and they have suffered some huge losses in the interim.
Due to Chinese red tape the deal is unlikely to be completed for several months, but all but $500m will be paid in cash to Ford, who will be grateful for the cash injection.
This sale follows on from Ford’s disposal of Jaguar and Range Rover to Tata of India, and GM’s sale of Saab to a consortium headed by Spyker Cars.
“We are pleased to have reached this agreement with Ford, enabling us to safeguard and strengthen Volvo’s renowned brand heritage,” said Geely Chairman Li Shufu in a statement issued overnight. “This transaction will ensure Volvo’s continued leadership in the premium segment, where it enjoys a global reputation for safety and environmental-friendly technologies.
“This famous Swedish premium brand will remain true to its core values of safety, quality, environmental care and modern Scandinavian design. As part of the proposed transaction, Zhejiang Geely Holdings will maintain the strong collaborative relationships that Volvo has built with employees, unions, suppliers, dealers and above all, customers.”
“Volvo is a great brand with an excellent product line-up. This agreement provides a solid foundation for Volvo to continue to build its business under Geely’s ownership,” said Ford boss Alan Mulally. “At the same time, the sale of Volvo will allow us to further sharpen our focus on building the Ford brand around the world.”
Crystal Ball Gazing
Massive changes are happening in the motor industry right now, so can you imagine what it’s going to be like in twenty years time?
We asked three of our staff members what they thought the likely trends could be.
Their thoughts varied from all-electric cars to plastic engines and a China/India domination.
Click here to read the full article. If you disagree or have any other thoughts to add we’d love to hear from you, so please add your comments below
Australian Driving by State, Age, Gender & Car Type
A recent survey conducted by the Social Research Centre confirms our own startling research survey conclusions conducted a year or so ago.
Australian drivers are simply not getting any better.
For example, a staggering 61 percent admitted illegally using mobile phones whilst driving, a shocking 30 percent said they had sent text messages and one in four believed they could drive 10 kph above the speed limit in a 100kph zone without being fined.
Sadly these are not the most serious indiscretions revealed in this government – backed driver survey
An alarming one in six of those surveyed admitted falling asleep at the wheel, and up to 1 in 10 drivers said they had driven while they thought they might have been above the legal alcohol limit at least once in the last twelve months.
Our own Private Fleet survey conducted amongst a much larger cross section reached similar conclusions and also showed many more concerning traits.
• Young Toyota drivers are 40 percent more likely than the average driver to talk on the phone whilst driving but they are 30 percent less likely to drink and drive.
• Female drivers fare well except that they are more likely to text when driving than their male counterparts.
• Holden holds the unenviable title of housing Australia’s worst drivers, whereas Mazda comes out top as having the best behaved drivers.
• The Australian Capital Territory can proudly claim to have the best behaved drivers in the country. But South Australia takes the booby prize, however the worst driving individual segment goes, perhaps unsurprisingly, to NSW ‘P’ platers
• Tasmanian drivers are more likely to speed than their Victorian cousins.
• Remarkably 51 percent of West Australian drivers admitted to having consumed three or more standard drinks before driving.
Does this sound right to you? Put your own theories to the test here – and feel free to add your comment below…
Breaking news – another recall?
Hot on the heels of the Toyota world wide recall we hear that another Japanese manufacturer is suffering from the ignomony of a widespread product recall.
Honda in the UK has announced a recall of the Honda Jazz model produced between 2002 and 2008 so that electric window master switches can be checked.
Honda say that “the master switch in the driver’s door can malfunction when exposed to large amounts of liquid ingress”
That’s Honda-speak for getting wet.
If the driver’s window is left open during heavy rain, water can leak on to the electic mechanism and can be a smoke and fire risk. Although it is understood that there are no reported health and safety incidents in Australia, apparently such an incident has allegedly led to the death of a two year old girl in South Africa last year, according to British media reports.
Apparently all recalled cars will be fixed with a waterproof skirt that will prevent further water getting in.
It is reported that over 650,00 Honda Jazz models are being recalled world wide.
It is not yet clear whether Honda Jazz models supplied in Australia will be subjected to a similar recall.
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