If approved, the Belgian loans will only be applicable for Volvo’s local operations

Ford is having trouble offloading its failing Volvo subsidiary but the company is determined to sell and in spite of the tough economic conditions still has several potential buyers. According to a recent report, however, the only potential buyer that has so far placed a bid for the Swedish automaker is China’s Geely.

Geely has today confirmed that its parent wants to bid for Volvo, with CEO Gui Shengyue revealing that his company is willing to make any bid in conjunction with a government-backed investor.

“I believe if Volvo is for sale and Ford has a global announcement, then our parent company will participate,” Gui said. According to Gui, Ford is yet to decide whether to sell Volvo.

According to a previous report, Geely hopes to start production of Volvo cars in a new factory in the Guangdong Province of China. As part of the deal, Geely will reportedly invest up to $10 billion in building the Volvo brand and the first model to be fully designed under the guidance of the Chinese automaker will be the next-generation XC90 due in 2011.

Source:carsmart101.com

If approved, the Belgian loans will only be applicable for Volvo’s local operations

Ford is having trouble offloading its failing Volvo subsidiary but the company is determined to sell and in spite of the tough economic conditions still has several potential buyers. According to latest reports, however, the only potential buyer that has so far placed a bid for the Swedish automaker is China’s Geely.

Swedish newspaper Dagens Industri is reporting that Geely has signed a letter of intent to purchase Volvo from Ford, citing several anonymous sources within the Chinese government. The source revealed that Geely and Ford were still nailing out the details, including the transfer of technology, Volvo’s marketing and market position and possibly layoffs, and that the Chinese automaker hopes to start production of Volvo cars in a new factory in the Guangdong Province of China.

As part of the deal, Geely will reportedly invest up to $10 billion in building the Volvo brand and the first model to be fully designed under the guidance of the Chinese automaker will be the next-generation XC90 due in 2011.

Previous reports suggested that Chinese automakers Dongfeng Motor Group, Beijing Auto and Chongqing Changan Automobile Co, as well as a European constellation, were among the final bidders.

Volvo was looking almost unsellable just a few months ago but with the Swedish government announcing it is willing to back $572 million in loan guarantees for the automaker, the deal has been sweetened a little. Furthermore, a Chinese company could benefit greatly from acquiring Volvo, especially with the Swedish automaker’s research and development teams and reputation for safety, which so far has been lacking in most Chinese made cars. Volvo’s North American dealership network could also prove attractive to emerging Chinese buyers in particular.

Incidentally, Ford bought Volvo for $6.45 billion back in 1999 and has since written down its value to less than $2.4 billion. With the state of the industry and the economy in general, however, the final sale price could be substantially lower.

Source:motorauthority.com

Smart ForTwo Edition Highstyle

Small’ and ‘luxury‘ don’t really fit in the minds of many ‘go big or go home’ Americans, and, given the type of small cars we’re typically exposed to, rightfully so. But there is a tradition of high-feature small cars in Europe, and it just grew one car larger with the addition of the Edition Highstyle Smart ForTwo.

The pint-sized Smart has already been lauded for its eminent ease of parking, especially in crowded cityscapes, and it’s even seen its fair share of success here in America. Penske, the car’s distributor, has sold so many cars that Daimler is considering U.S. production for the cars, and is exploring release of the all-electric Smart ED here too. Brabus has even confirmed its powered-up version for the U.S.

So that makes the Edition Highstyle all the more interesting – though it’s only officially announced for Europe at present, with a growing U.S. presence, the lux-Smart, or at least an equivalent, might eventually see U.S. sale.

What exactly do you get with the latest up-spec Smart? Exclusive chocolate brown metallic paint, 12-spoke 15-inch alloy wheels and aluminum-look logos don the outside. Inside, metallic leather seats and door highlights, light and dark contrasting fabric accents, brown seams and a leather-look instrument panel give the car a premium feel, while the leather-trimmed steering wheel and gearshift enhance the driver-car interface. Matt silver trim elements finish off the treatment.

Based around the Coupe Passion trim, the car also features automatic stop-start, automatic climate control, a panoramic roof and an upgraded stereo system. Optional upgrades include electric power steering, heated seats and an MP3-capable audio system.

Power is delivered by the standard 71-horsepower micro hybrid drive engine and can be upgraded to the more boisterous 84-horsepower model.

Source:motorauthority.com

2009 Chrysler PT Cruiser

Daimler and Chrysler may have gone their separate ways back in 2007 but the two companies are still closely linked, especially since several of their models share common parts. It is because of this sharing of parts that has led to the latest squabble between the two, with Chrysler accusing Daimler of refusing to honor contracts to supply components and thus threatening production at some Chrysler factories.

The latest allegations are contained in a lawsuit filed last Friday in a U.S. Bankruptcy Court in New York but so far Daimler has rejected all the claims. The claims say Daimler is refusing to supply steering columns and torque converters in order to pressure Chrysler to make payments for stemming from a previous dispute between the two companies.

In the previous dispute, Daimler claims that Chrysler still owes it around $78 million to compensate for reduced volume for a 2.2-liter diesel engine designed for the PT Cruiser in Europe. Daimler says it is owed this amount because Chrysler didn’t buy as many of the engines as it had said it would.

Source:motorauthority.com