Three Volvo Unions Say No To Geely Deal
Three of Volvo’s four trade unions have come out against Geely’s purchase of Volvo, which sources say will be finished by Sunday this week. The unions wrote in a press release on Thursday that they are afraid that Geely doesn’t have enough capital to manage future investments and expansions.
The unions want above all to put pressure on Ford, Volvo’s current owner, which they consider responsible for making sure that the Chinese company has enough capital to run the car manufacturer.
“If it can’t be shown that Geely has the necessary financial resources, it’s better that Ford retains Volvo,” Magnus Sundemo of the engineering union told news agency TT.
The fact that the three trade unions have come out against the deal could affect the entire affair. Li Shufu, the owner and director of Geely, told Swedish journalists in January that the purchase will fail if the unions don’t want the deal to go through.
At the same time, it seems more and more likely that the sale will be finished by this Sunday, when a contract between Ford, Volvo, and Geely will be signed.
A source tells TT that Geely has secured the necessary financing, and that the final sale price will hover between 1.8 and 2 billion US dollars.
If all goes well, the takeover should be complete by June 30 this year.