Bankruptcy

Volvo Sale to Chinese Company Proceeds; CEO to Step Down

By mcbride

?Geely [Zhejiang Geely Holding Co.] is buying Volvo from Ford for $1.8 billion in the biggest overseas purchase by a Chinese automaker. Volvo?s leader will have to staunch plummeting sales to return the company to profit while tapping growth in China, which surpassed the U.S. as the world?s largest car market in 2009. Geely plans to invest $900 million in Volvo, Chairman Li Shufu said in Beijing today.

?Stephen Odell, the Ford Motor Co. veteran who has been chief executive officer of Volvo Cars since 2008, will probably step down after Zhejiang Geely Holding Co. takes over, board members at the Swedish carmaker said.

Odell, who joined Ford of Britain in 1980 as a trainee, may be tapped to be the next chief at Ford of Europe, Magnus Sundemo, a board member who heads Volvo?s engineering union, said in an interview. Volvo?s leadership may be discussed at a board meeting today, said Thomas Ivonen, another board member at the Gothenburg-based automaker.

?Odell?s been with Ford so long and is loyal to it; that?s where his heart is,? said Ivonen, who heads the carmaker?s union for professional workers. ?I feel certain he will remain with Ford.??

One wonders how the new owner will integrate and manage the existing work force at the Swedish company.  

Here is a link: http://www.businessweek.com/news/2010-03-30/volvo-ceo-odell-may-step-down-after-geely-takes-over-update1-.html

Michael  

Full post as published by Texas Lawyer Blog on March 30, 2010 (boomark / email).