So this is basically a supplement to recently reported news here that Geely was getting together a quarter billion dollars to do something, and it denied that its aim was to buy Volvo.

Now, the current Volvo CEO, Stephen Odell, has also denied that Geely is interested in purchasing the beleaguered auto company.

This actually leaves Volvo in a pretty bad spot–it’s a money losing division inside a money losing company in a bad economy.  You add all these little results together and it looks more like someone’s just waiting for Volvo to bottom out so they can swing in and buy up all of Volvo’s assets for pennies on the dollar.

Considering the only other firm to even express an interest was Beijing Auto, and they were knocked out of the running way back in June, this doesn’t mean anything good for Volvo.

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You’ve got to love the Chinese negotiation style. First they’re interested in Volvo, then they release a statement saying they’re not.  Then they follow THAT up by announcing they’re trying to raise two hundred and fifty million dollars, which they IMMEDIATELY follow up by saying that it’s not at ALL for buying Volvo because that’s not near enough money for the beleaguered loss-leading car line.

“The size of the bond and warrant issue is not enough compared with what would be needed for the Volvo takeover,” the executive was quoted as saying.

See, that’s exactly what they said.  It kills me, really it does, but it sounds for all the world like they’re interested.  They’re hiding it really well but they keep dropping hints.  Lots, and lots, and lots of hints.

I suppose only time will tell, but I expect to be hearing the phrase “will tender an offer” soon.

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Remember back in March when we were talking about all those vague rumors about who wanted to buy Volvo out from under Ford?

Turns out the name of the business is Geely Automotive, along with a state-owned partner.  Both of these outfits are flush with cash while riding one of the largest domestic car market expansions in history.

Now, this move actually helps Geely out pretty substantially, as its cars are big, BIG names at home but they’re not so hot abroad.  I don’t know about you but I hadn’t even heard of “Geely Automotive” before today.  But if they can get some of their cars and manufacture them under the Volvo banner, they’ll get a serious halo effect advantage from the Volvo name.  Everyone’s heard of Volvo, after all, and a Geely car made by Volvo would have a better public perception.

We’ll keep an eye out and see if this deal goes anywhere, or if it’s just more corporate smoke and mirrors.

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