Believe it or not, the deal to sell the Volvo brand between Ford Motor Co. (F) and Zhejiang Geely Holding Group Co. still isn’t finalised.
The two are set to sign a purchase agreement around $2 billion at the end of the month and while unions have signed on to support the deal, they worry about the financial viability of Volvo.
Bloomberg: Zhejiang Geely Holding Group Co. may have to spend at least 10 billion kronor ($1.4 billion) to revive Volvo Cars after buying the Swedish brand from Ford Motor Co., Volvo union officials and board members said.
The figure would be “an absolute minimum” for financing car development, marketing, production and distribution in the next year, and the money needed could be double that amount, Glenn Magnusson, head of the managers’ union at Gothenburg, Sweden-based Volvo, said in an interview.
“We still want them to show us that they have the financial strength,” Magnusson said yesterday by telephone. “We haven’t seen anything yet and we are not satisfied.”
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