Geely Claims Ford Deal On Volvo Intellectual Rights
27.11.09, 18:10 Uhr
BEIJING -(Dow Jones)- China's Zhejiang Geely Holding Group Co. said Friday it had reached a deal with Ford Motor Co. (F) on intellectual property rights in its bid for the U.S. company's Volvo unit.
An agreement with Ford would mark a significant step forward in talks between Geely and Ford, which, like General Motors Co., is trying to offload a loss-making Swedish auto unit.
Resolving intellectual property rights has been a key stumbling block for both U.S. auto makers in efforts to sell overseas brands to potential buyers from China and Russia with ambitious industry expansion plans of their own.
Geely, one of China's largest auto makers, said it remained the preferred bidder for Volvo. "Volvo will be able to use Ford's IPR that is needed for [it] to continue its existing business plans," it said in a statement.
Through the Volvo purchase, Geely would own the IPR to Volvo's key technologies, including those related to safety and the environment, the Chinese auto maker added.
John Gardiner, a Ford spokesman, said any final agreement would take into account the rights and protection of the engineering, manufacturing and supply relationship between Ford and Volvo.
"No final decisions have been made but our objective in our ongoing discussions with Geely is to secure an agreement that is in the best interests of all parties concerned," Gardiner said.
In October, Ford had tapped Geely as the preferred bidder for Volvo. However, IPR issues were a main dispute between the two sides, a person familiar with Geely's stance said earlier this month.
A successful sale would finally dismantle Ford's international foray so that it can focus on its core brand. Jaguar, Land Rover and Aston Martin have already been sold.
The broader future of the Swedish auto sector remains in doubt until deals are finalized for the sale of both Volvo and Saab.
Saab said Friday that it had received approaches from a number of parties that are interested in buying the Swedish brand from GM.
The loss-making unit's future was thrown into doubt after a consortium led by Swedish super-car maker Koenigsegg Automotive AB backed out of a deal with GM to buy Saab because of risks created by delays in completing the deal.
Saab declined to identify potential new bidders. Unless another buyer emerges, there's a good chance GM will consider closing Saab rather than invest the money and staffing needed to turn it around.
GM's board is due to meet Tuesday at a previously scheduled meeting where the future of Saab will be discussed.
Resolving intellectual property rights has been a key stumbling block for both U.S. auto makers in efforts to sell overseas brands to potential buyers from China and Russia with ambitious industry expansion plans of their own.
Geely, one of China's largest auto makers, said it remained the preferred bidder for Volvo. "Volvo will be able to use Ford's IPR that is needed for [it] to continue its existing business plans," it said in a statement.
Through the Volvo purchase, Geely would own the IPR to Volvo's key technologies, including those related to safety and the environment, the Chinese auto maker added.
John Gardiner, a Ford spokesman, said any final agreement would take into account the rights and protection of the engineering, manufacturing and supply relationship between Ford and Volvo.
"No final decisions have been made but our objective in our ongoing discussions with Geely is to secure an agreement that is in the best interests of all parties concerned," Gardiner said.
In October, Ford had tapped Geely as the preferred bidder for Volvo. However, IPR issues were a main dispute between the two sides, a person familiar with Geely's stance said earlier this month.
A successful sale would finally dismantle Ford's international foray so that it can focus on its core brand. Jaguar, Land Rover and Aston Martin have already been sold.
The broader future of the Swedish auto sector remains in doubt until deals are finalized for the sale of both Volvo and Saab.
Saab said Friday that it had received approaches from a number of parties that are interested in buying the Swedish brand from GM.
The loss-making unit's future was thrown into doubt after a consortium led by Swedish super-car maker Koenigsegg Automotive AB backed out of a deal with GM to buy Saab because of risks created by delays in completing the deal.
Saab declined to identify potential new bidders. Unless another buyer emerges, there's a good chance GM will consider closing Saab rather than invest the money and staffing needed to turn it around.
GM's board is due to meet Tuesday at a previously scheduled meeting where the future of Saab will be discussed.
DJG/sch
