The Chinese government authorizes Chery to acquire Volvo

Ford has been trying for several months now to sell Volvo. However, although it has received several offers, most have ended up declaring they were not interested in buying the Swedish company. The harsh economic conditions facing the automotive sector and the particular situations of each manufacturer complicate this process by which Volvo is trying to begin a new stage, detached from its North American parent company.

The latest news on the matter came from a source familiar with the sale, who told the Shanghai newspaper Oriental Morning Post that the Chinese government has authorized the manufacturer Chery to buy Volvo. Chery competed for this acquisition with other Chinese brands such as Dongfeng or Chongqing Changan. The head of Chery, Yin Tongyao, commented last month that they did not rule out the possibility of acquiring a European brand in need of help.

The granting of a loan of 445 million euros from the Swedish government to Volvo, which was confirmed last month, seems to have improved the conditions of the purchase, and therefore Chery would have increased its interest in the Swedish company. The Chinese manufacturer could take advantage of the technology and safety expertise of Volvo to improve its products, while Volvo would see resolved this saga of its “divorce” from Ford. However, there will be a significant audience that will not look favorably on Volvo ending up in Chinese hands.

Source | Motor Authority