More on Ford and Changan Cooperation After Sale of Volvo to Geely

On the burst in the media, Geely and Volvo on March 28 will sign shortly after the news of the acquisition agreement, Ford Motor Company CEO Mulally help secretly to China March 19, stay 3 days. Contrary to the industry's expected is that, in this 3-day period, Mulally did not meet Geely Auto Group Chairman Li Shufu, but went straight to Changan Automotive Group, with the Group Chairman Xu Bin, president and Xu Ping had to stay closeted.

According to Chang-an insider revealed that in the talks, the Ford side said that if the unlucky after the acquisition of Volvo, previously produced in Changan Ford's Volvo car was lucky to get ahead of production, then Ford would be paid to one Chang-an of funds to make up for the losses caused to the Chang-an.

At present the two sides are still discussing this plan and not finalized.

China is now the world's fastest growing, with the greatest potential, and the best market, Ford Motor has put the Chinese market as the most important "strategic positions" in the planning and development. Mulally to Xu Bin, admits: "Next, Ford Motor will speed up the cooperation with Changan Automobile hopes the two sides reached an agreement as soon as possible to enter the substantive operational phase, and further deepen bilateral cooperation."

For Mulally's position, XU Bin also hope that Ford can be at a higher level of strategic cooperation with Chongqing Changan Automobile started at the same time to deepen cooperation to develop international markets. Bin proposal: "This cooperation may be either the deepening of existing cooperation level may also be a group of dialogue directly with Ford."

The reporter learned from relevant sources that in the future, Ford will launch own-brand vehicles this year in China, to accelerate the pace of product development and an SUV model is expected to be rolled out of Chang'an production line. In addition, Ford will go further with Changan in the new energy vehicles cooperation.

In July 2006, Volvo S40 began to sell in China, it's the first car to be produced in China for Volvo after the "transfer of technology". The Volvo S40 is based on its P1 platform,which is Ford's C1 platform. Quite popular in the Chinese automotive market, Ford Focus and Mazda M3 models are from the same platform. Perhaps precisely because of this platform to coincide Chinese consumers a "taste", the Volvo S40 available after the impressive performance in the Chinese market, its sales of Volvo cars have been accounted for over half of the entire department vehicles. Despite the financial crisis, the Volvo S40 sales in China are affected, but remain strong.

The Volvo cars have not yet made high sales figures.

Volvo XC60, XC70 and XC90 performance and design are on par with the BMW X5, Audi Q5 comparable, but the price point,they are far behind.

If the three models in a can be achieved through the Geely-made, the original price down, then Mr. Li would have to be realized in Gothenburg, Sweden, he said, through the Chinese market to re-enable the promise of vitality Volvo .

However, when compared with Changan, Geely will more effort to give in order to run the Volvo S and XC product line,


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