#Geely

Two years ago, China’s Geely bought Sweden’s (and Ford’s) Volvo lock, stock, and barrel. Among the assets: A few good Volvo platforms, along with a fair technology licensing contract from Ford. However, the platforms are not getting younger, and from what I heard back then, the licenses with Ford also have their limits. Geely has to invest into the future if Volvo is supposed to have one. Price of admission to the future: Many times the purchase price of the car company.

Further on the news that Stefan Jacoby is out at Volvo and that Hakan Samuelsson is in, the parties decided to forgo the face-saving explanation that the change was due to medical reasons. They confirmed that is was a boardroom brawl which Jacoby lost. In a press conference today, Volvo Vice-Chairman Hans-Olov Olsson said “that Jacoby’s illness had nothing to do with the decision to remove Jacoby,” Reuters says.

I know I normally don’t come around and annoy you at this time in the week but the news are too important to wait.

Last month I brought your attention to the fine performance of Great Wall in Bulgaria where the Chinese company has started production, a first for a Chinese manufacturer in Europe, and I wondered whether this would finally mark the start of the oft-predicted ‘Chinese invasion’ of the Old continent…

Well.

Looks like the invasion invited itself to the party…

With a new Volvo XC90 finally getting a re-design in 2014 (after 12 years on the market!), the old platform, like so many old European cars, will move on to become a Chinese market car – though Geely has grand aspirations for the venerable Swedish SUV.

Our man Bertel Schmitt is en route, all set to cover the Beijing Auto Show for the next two days. By our count, there are over 70 debuts, with many of them being Chinese market products; concept cars, older vehicles re-issued and manufactured in Chinese JV factories and obscure concept cars. A complete list, with a brief description can be read at just-auto.com for anyone really interested in the Brilliance Jinbei Large Sea Lion Camper or the HaiMa Yao.

NBA star Jeremy Lin of the New York Knicks will endorse Volvo cars, after signing a deal with the company. Lin, who graduated from Harvard and took an unconventional path to the NBA, has Taiwanese-born parents, is extremely popular in China, where basketball has a strong following.

Geely has chosen their battery technology partner for their new plug-in hybrid vehicle, and their supplier, A123 Systems Inc., may not be a familiar name to everyone, but their wares have been used by other vehicles like the Fisker Karma.

Today is Wagon Day, a brand-new made up holiday when North Americans are tortured with photos of wagons that will not be available to us despite our endless pleas. First up, the Volvo V40.

We have been pointing it out for quite a while: Something counter-intuitive (and counter- conventional wisdom) is happening in China: While the growth of the general market is slowing down, it is at the expense of the Chinese brands. The foreigners are doing fine.

Nothing illustrates this better than the story of the two Gs, Geely and GM. In October, the growth of the Chinese market effectively came to a halt.

How did the two Gs fare during that braking maneuver?

Guy Lofalk, the administrator of Saab’s reorganization, will ask the court in Vänersborg to terminate the reorganization process. Before, Saab expressed “ doubts that the bridge funding of Youngman and Pang Da, of which a partial payment has been received, shall be paid in full on 22 October 2011.” Finally something we can agree on.

What happens if the court accepts Lofalk’s recommendation? Stockholm News explains it:

In a statement issued late Friday, China’s Geely poured cold water over rumors that it is interested in Saab, but confirmed that there was a meeting – because they wanted to be nice. There is another version that says that Sweden’s Finance Minister caused Geely’s Li Shu Fu a massive loss of face, whereupon he took his balls and went home.

Where to start? Let’s start with the money. The $96 million promised by China’s Youngman and badly needed by Saab are not here. They haven’t left China either. Not just because China is on vacation. Youngman claims they have not received what they were promised, and until that happens, no money will be sent. “If the conditions are not met, we cannot pay,” Rachel Pang, president of Youngman, said in an email to Dagens Industri. Welcome to China. Now wait what the Swedes have up their sleeves.

Yesterday, we reported that Saab was waiting for some $93 million to arrive from China. The matter has not changed. Now, people on the inside get the impression that yellow knight Youngman wants out. This morning, Swedens’s Dagens Industri cited an inside source that says that Youngman wants out, and another Chinese maker wants in. Yeah, sure.

The national character of auto brands is a tricky thing. For decades, Volvo wore its Swedishness on its sleeve, emphasizing the values that made Ikea, Abba and Swedish porn so popular in the US… even when it was an outpost of the Ford empire. And then the unthinkable happened: Chinese up-and-comer Li Shufu bought the brand and rolled it into his Geely empire. In the world of national-character-branding, being bought by a Chinese firm is something like hiring Casey Anthony as a brand ambassador, or using a mascot called “Mr Melamine Milk” (another nightmare scenario can be found here). So, how does a brand like Volvo, that was built on Swedishness, get past the “China Factor”? By doubling down on Swedishness? How about by building cars in the US?

According to conventional wisdom, all cars in China are blatant copies of foreign cars. With the joint venture cars, that is certainly true. With some true red Chinese cars this is also sometimes the case. Now it seems that Chinese carmakers ran out of foreign victims and started to copy Chinese cars. Volvo is owned by China’s Geely, as we all know. Can you spot the true Volvo?