Chinese national planner positive on Geely's take-over of Volvo
A deputy minister of the National Development and Reform Commission (NDRC), China's top economic planning agency, Saturday (April 10) said it would be positive on Geely's purchase of Ford's Volvo car unit should the Chinese carmaker have a reasonable preparatory plan.
Zhang Xiaoqiang said Li Shufu, president of Zhejiang Geely Holding Group, had acknowledged that it faced huge pressure on the fusion of corporate culture and workers' union management.
The privately-owned carmaker is also thought to face huge pressure on further improvement of Volvo car-making expertise, sales expansion, and huge acquisition funds.
"Should Mr. Li's team have a rather reasonable preparatory plan towards these issues, our attitude will be positive," Zhang said at the ongoing annual conference of Boao Forum for Asia in Boao, a coastal town in south China's island province of Hainan.
Geely signed a deal with U.S. auto giant Ford Motor Co. on March 28 in Sweden to acquire Volvo for 1.8 billion U.S. dollars. The deal is subject to the NDRC's approval.
Zhang said the move of Geely, a fledgling carmaker, to purchase Volvo car unit after two to three years of studies and preparation was a sign that Chinese entrepreneurs are striving to expand their international presence.
They need such an international vision to further expand business, he said.
