Although both Ford and Volvo have opted to keep tight-lipped on the matter, mounting evidence suggests that Chinese automotive company Geely Automobile Holdings will shortly become the proud new parents of a once-great Swedish subsidiary. In March of 2009, Ford confirmed the existence of Project Nile, an internal prep team charged with completing the sale of Volvo by the end of the year which, when using the fiscal calender, will occur in exactly seven days. Initially, sources claimed that Ford was beating off potential buyers with a stick but more recent reports have revealed that the sole buzzard circling Volvo’s rotting carcass is Geely, a company that has generated a solid reputation in the industry for being, to be colloquial, a bunch of sneaky bastards. Fortunately, Volvo’s estimated $2 billion price tag was deemed too steep for Geely and we were given a faint ray of hope, until today.
According to reports, Geely confirmed this morning that private equity firm Goldman Sachs plans to purchase HK$1.9 billion (US$245 million) in convertible bonds from the company, which Geely reports they will use for, among other things, “potential acquisitions.” Remarked Changjiang Securities analyst Yi Junfeng, “It’s a wise move for Geely as it can use the money to build up capacity and free up capital for its parent, which has publicly announced its interest in Volvo.”
Stay tuned for more on this truly depressing story as it develops.