Geely, ready to be married?

Ford Motor Company announced Oct.29 that a consortium led by Zhejiang Geely Group Holding Co. Ltd. is its preferred bidder in the ongoing discussions concerning the possible sale of Volvo Car Corporation. When Geely and Vovlo are reported as a supposed couple, it seems few are optimistic about this transnational marriage.

Is Geely ready to marry such a storied auto maker? We have no ideas but doubts exist.

Their "morganatic marriage" is the most apparent to attack.

Volvo is recognized as the world's high-end brand, sharing the same brand-grade with Mercedes Benz, BMW, Audi. Sponsoring the world's sailing, golf Masters Cup, Tennis Open, Volvo has deep roots into such an "aristocratic life".

The bridegroom, Geely has long targeted at family users since it rolled to the market in 1997. Except its Emgrand, high-end vehicle of Geely, it has almost nothing to do with the upper society. With distinctive background, there are no doubt comments on the negative side.

There's no business but man business.

To Geely, one more big concern is how to maintain the Volvo's core values -"the people"
Magnus Sundemo, representing the engineering union of Volvo Cars, seems to be the direct protestor against this marriage.
 
"My main concern is whether they have what is needed to understand Volvo culture - the way we work here and the values of Volvo - to take the right decisions for the future. Will we still be able to work with the same suppliers, get the right technology level to be able to compete? Those are our main concerns and of course we need good answers to those questions to be able to support this bid," he said.

"Geely is "the preferred bidder, not the only bidder," implies an unfriendly voice that comes inside the Vovlo.
Reportedly, Geely plans to cover "Man business" by stakes distributing to Vovlo employees and remaining their independent management.

At least Geely has been aware of this big business. But who knows how it works out?

IP issue matters.

The deepest pothole is the intellectual-property issue. Volvo has technology that its parent, Ford Motor, may not want to surrender to Geely, especially if Ford wants to make a run at expanding in China, said the Wall Street Journey.

When the deal meets the negotiation over intellectual property, an asset hard to measure, the deal takes time. US audience is afraid of a kiss of death after Vovlo's technology disclosed, while the bridegroom side is concerned about how to make a great leap forward on the tech power through this "marriage." There is no wonder the marriage falters in front of the IP barrier.

"Ford believes Geely has the potential to be a responsible future owner of Volvo and to take the business forward while preserving its core values and the independence of the Swedish brand. But there is much work that needs to be completed in the more substantive discussions that are agreed to take place," said Ford right after it announced Geely as the preferred bidder.

Remember, "There is much work to be done." And it really fits the Chinese's saying-"Every marriage is demanding."