The die is cast, Volvo Cars is now in the hands of the Chinese company Geely. Earlier, Flemish prime minister Peeters had an appointment with the Swedish company’s CEO Stephen Odell to discuss the approaching contract of sale. Minister Peeters had to make sure the Flemish plants would sustain the overtake.
Previously, Volvo was in possession of the American company Ford. Due to the economic crisis Ford felt the pressure to sell a couple of luxury car makes such as Jaguar and Aston Martin in 2007.
The acquisition of Volvo has never occurred in China, it is the most elaborate overtake ever for a Chinese car constructor. China has one of the most extensive markets all over the world, their voluminous population provides a stable turnover. This gives them the opportunity to address to foreign, western markets as well.
The Belgian plants in Ghent and in Göteborg were pleased to perceive the news. Although Geely is planning on establishing a new plant in China, the ones in Belgium and Sweden will be preserved. Guarantees concerning continuity, productivity and the certainty of employment.
In my prospective this is a good evolvement for Volvo in its entirety but more specific for Ghent and Göteborg as well. If another company took over Volvo, both of the plants in Ghent and Göteborg could be closed. There are already many problems in Belgium concerning unemployment and in plants such as these, a big working environment could be brought to a close.
The Chinese company Geely could breathe life into western markets when it comes to technology. We all know the majority of new technologies are set in motion in Japan and China.
http://www.standaard.be/artikel/detail.aspx?artikelid=DMF20100328_063&subsection=215
A message for my fellow students, I know my blog describes the same object as annelies' but I will change it when I have the time to.
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