Spyker Cars Says Saab won’t Meet its Sales Target this Year, Now Talking with Chinese Companies for Funding

The roller coaster that is Saab has taken another turn, and unfortunately for the Swedish brand, the future doesn’t look so bright. In spite of a tentative agreement to let Russian banker Vladimir Antonov invest 30 million euros in Saab’s parent company Spyker in return for a 29.9 percent stake, the investment still needs to be approved by the European Investment Bank, which means the Swedes are still short on cash and cannot resume full production.

Today, Spyker reported a loss of €79 million before interest and tax for its first quarter earnings, while the company’s CEO, Victor Muller, said that Saab will not meet its sales target this year.

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VIDEO: Geely’s McCar Bundles Four Seats and a Scooter in a Mini Package

At the 2011 Shanghai Auto Show, Chinese automaker Geely displayed an interesting concept car called McCar, whose funny name reportedly stands for “Magic car” and “Motorcycle Car” , and has nothing to do with the famous chain of fast-food restaurants – unless you take into consideration the fact that there is a folding electric scooter sandwiched between the rear seats of the car… Read more »

Geely Drops Five New Models and One Concept Car at Shanghai Auto Show 2011

This past week saw many new production and concept cars making their world premiere at the increasingly important from a global point view, Shanghai Auto 2011. One of the most prominent brands of the show is Geely Auto, the Chinese automaker and owner of Volvo Cars, which displayed 37 vehicles along with its latest R&D achievements.

Headlining the Chinese automaker’s presence at the show is a hybrid concept vehicle called the McCAR and five new models that the company says will soon enter production and include the Gleagle GC6, Gleagle GX6, Gleagle GS-CC Coupe, Emgrand EC6-RV and Englon SC7-RV. Head over the jump for more details and photos.

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Volvo Teases Mysterious Concept Universe that Could Preview a Flagship Model

Volvo released a teaser video of its upcoming Concept Universe, without giving out any additional information other than that it's a new design study that will be launched shortly. This means it could debut at one of this month's international auto shows, either in New York (April 22 – May 1) or Shanghai (April 21 – 28). Taking into account the fact that Volvo is owned by China’s Geely, the Shanghai show could be the more probable venue of the two for the new Volvo. Read more »

Volvo to Cut Down its U.S. Lineup, V50 Among the First to go

With its U.S. sales steadily declining for 7 years now, Volvo has no choice but to radically rethink its strategy. The Swedish automaker is currently offering nine models in the States or about as many as Volkswagen does, but it sold almost five times fewer cars than the Germans in 2010.

Consequently, the Swedish brand, which is now owned by China's Geely, has decided to significantly reduce the number of models in its North American lineup and concentrate on best-selling vehicles in an effort to increase sales.

“Five or six is probably a good number”, said Doug Speck, head of Volvo’s operations in the U.S., in a telephone interview for Bloomberg. “We have to focus on the key segments with significant volume potential”.

Mr. Speck confirmed that the V50 estate is sure to go, although didn’t specify exactly when, saying that dealers will be notified first. The manufacturer hasn’t decided yet which other models will be phased out, but it will definitely keep the S60 sedan and the XC60 and XC90 crossovers, he added.

Volvo will also try to boost sales with more advertising and expects “double-digit” percentage growth in the U.S in 2011.

As for the near future, Mr. Speck said that Volvo will introduce hybrids and all-electric cars, but declined to say if it will bring diesels to America.

By Csaba Daradics

Source: Bloomberg

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China's Geely Completes Takeover of Volvo from Ford

Chinese carmaker Zhejiang Geely Holding Group Co. (simply known as Geely) completed the purchase of Volvo Cars from Ford Motor Co. on Monday. According to Ford, Geely paid $1.3 billion in cash today and issued a $200 million note for the acquisition of the Swedish carmaker. The exact amount of the final sale price will be announced later this year when the final adjustments on Volvo's value are made, and could result in additional proceeds to Ford.

"Volvo is an excellent brand with a strong product line, and it has returned to profits after a successful restructuring. We are confident Volvo has a solid future under Geely's ownership," said Alan Mulally, Ford's president and CEO.

"At the same time, the sale of Volvo will allow us to sharpen our focus on the Ford brand around the world and continue to deliver on our One Ford plan serving our customers with the very best cars and trucks in the world."

Under the agreement, Ford will continue to cooperate with Volvo in several areas supplying powertrains, stampings and other vehicle components. It will also provide engineering support, information technology, access to tooling for common components, and other selected services for a transition period.

The Detroit automaker added that it has also come to an agreement with Geely on the use of intellectual property.

As previously announced, Stephen Odell, CEO of Volvo Car Corporation, will return to Ford as group vice president and Chairman and CEO of Ford Europe. Stuart Rowley, CFO of Volvo Cars, will also head back toFord as chief financial officer, Ford Europe.

"Volvo is a proud company with a talented and dedicated team of employees," said Odell. "I am especially pleased that with Ford's continued investment in recent years, Volvo is well positioned for the future with an exciting range of products that remain true to its core values – safety, quality, environmental responsibility and modern Scandinavian design."

Geely has announced that Volkswagen's former U.S. Chief Stefan Jacoby will replace Odell and become CEO of Volvo Car starting from this month.

Ford and Geely Hit "Snag" in Volvo Deal

Trouble's a-brewin' in the Ford/Geely Volvo sale, or so Zhejiang Geely Holding Group Chairman Li Shufu implies. The good news is it doesn't sound too serious.

Automotive News states that there may have been a "snag due to problems at Ford Motor Co."; regardless, Chairman Li says, "We're ready to seal the deal...If the deal fails, the problem is not on our side. We have not violated any part of the agreement."

The report goes on to say that Geely's plans for taking ownership of Volvo within the second quarter of 2010 have not changed. If that's the case, and the deal goes through, Chinese Geely will have Volvo safety, engineering, and design to spread throughout its portfolio.

Safe Chinese cars that look good? Maybe they're getting ready to take over the world after all.

- By Phil Alex

Via: Automotive News

Ford Confirms Deal with China's Geely on Volvo Sale

While General Motors is still trying to figure out what it's going to do with its Saab division, Ford Motor Company announced today that it has settled all substantive commercial terms with China's Geely Holding Group Company Limited on the prospected sale of its Volvo unit.

Ford added that while some work still needs to be done before the deal is sealed such as final documentation, financing and government approvals, the company anticipates that a definitive sale agreement will be signed in the first quarter of 2010, with closing of the sale likely to occur in the second quarter of the same year.

"The prospective sale would ensure Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise, while enabling Ford to continue to focus on and implement its core ONE Ford strategy," Ford said in a statement,

The Detroit automaker added that it would continue to cooperate with Volvo Cars in several areas after the sale, but it does not plan to retain any shares in the business.

It is said that Geely is offering the U.S. automaker somewhere around $2 billion dollars for Volvo Cars which is less than a third of what Ford paid for the Swedish brand a decade ago.

With the prospected sale of Volvo, Ford will offload the last brand in the Premier Automotive Group that also included Jaguar, Land Rover and Aston Martin.

Chinese Tuner Builds Ferrari Enzo Wannabe Replica Based on Geely Coupe

You'd expect that a Ferrari replica from China, a country where the automotive industry has turned European and Japanese car cloning into a science, would at least be presentable. Because what you are seeing pictured above is just a computer-generated image of what the tuner hoped his modified Geely coupe would resemble. If your taste buds (and stomach) can handle it, click through to see the end result...

Via: Gaibar

Revised Geely GT Coupe Concept Flies into Shanghai

Alas, a Chinese car with a unique design that does not resemble any other vehicle around. As we reported earlier, Geely's design team refreshed the GT Coupe Concept's looks for the Shanghai Auto Show and while they were at it, they also added a pair of Lamborghini-style scissor doors that open without the use of a key and a working interior which is somewhat less impressively styled than the coupe's exterior.

The GT Coupe, which was first seen at last year's Beijing Show, is powered by a V6 gasoline engine. Geely said that it is considering the development of a production version of the coupe under its new brand name, Emgrand, in the near future.

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Photos Copyright: UP

Geely GE: Live Photos of China-Made Rolls-Royce Phantom Lookalike

They may say that imitation is the best form of flattery, but we wouldn't bet that the uptight chaps over at Rolls Royce are feeling any sort of flattery upon viewing Geely Motors' luxury GE sedan at the Shanghai Auto Show. To say that the GE's exterior design is inspired from the Rolls Royce Phantom would probably be an understatement. The 5.29 meter or about 208 inches long Chinese limo is a tad shorter than its uber luxurious British counterpart but whereas the Phantom gets a normal rear seat bench, the GE has a single rear chair fit for a king, queen or maybe even a member of the Chinese government...

Not surprisingly, the Geely GE Limo does not get a massive V12 engine but instead it goes by with an 'everyday' V6 gasoline engine that's good enough for an output of 278-horsepower and 340Nm of torque that is channeled to the rear whees via an automatic transmission.

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Pics copyright: UP

Shanghai Preview: Geely EC718 Sedan and Hatchback

Chinese automaker Geely has published a new set of photos of its all-new EC718 sedan and hacthback models that are destined to make their world debut along with 20 or so other production and concept cars from the firm including the GT Coupe at the Shanghai Auto Show. The inelegantly named subcompact four-door sedan and five-door hatchback will be offered in the Chinese market with numerous four-cylinder gasoline engines. Geely seems to be quite optimistic about the future of the two new Focus-sized models as the company said that it plans to sell both cars in many markets outside China.

Geely at the 2009 Shanghai Auto Show: The Full Monty

Just as it did at last year's Beijing Auto Show, Chinese automaker Geely is preparing to exhibit a mind-boggling -for Western carmaker standards - 22 production cars and concept studies at the upcoming Shanghai Auto Show which runs from April 20 to 28. Aside from the closer-to-production GT concept and the Phantom-clone GE luxury limousine, the Chinese automaker's stand will host a variety of cars ranging from the all-electric EK2 and the IG mini to the Honda Ridegline-like ET925 four-door pickup truck and the GV515 minivan. Click through to check out the full gallery.