brand collaborators
Posted by Abe Sauer on December 25, 2009 10:24 AM
It's been a tough year for automotive brands with foundations in Sweden.
Saab's future looks grim, as many have speculated the brand's demise is immanent. Meanwhile, Volvo is in better shape, but only comparatively.
Both brands, however, boast a cadre of loyal consumers and fans, and more importantly, nearly unparalleled reputations for safety. This may be exactly why China's Geely auto group is one step closer to fully acquiring the Volvo tag.
Under a deal struck with Ford, final turnover of Volvo to Zhejiang Geely Holding Group may occur as early as Q2 2010. Despite paying $6 billion for Volvo a decade ago, Ford is expected to net only $2 billion from Geely.
Geely has come a long way since its beginnings as a brand of refrigerator. Today it is one of China's leading brands and is slowly cultivating a reputation overseas. Goldman Sachs has even expressed interest in a stake in Geely, which certainly indicates a growing confidence in the brand's potential. Nonetheless, Geely still suffers from the same problem plaguing many Chinese brands -- high lead content. Kidding. But the joke illustrates a nagging reputation that haunts Chinese brands regarding quality issues.
Volvo could serve as a solid foundation on which to build and improve the image of Geely's other offerings. Marketing that positions Geely in concert with the Volvo brand name would certainly have a beneficial halo effect -- particularly with safety concerns. Yet, Volvo's current brand needs to be maintained and Geely recognizes this, pledging to support "independent management" in Sweden.
All in all, a smart move by Geely.
| Privacy Policy | About Us | Contact Us | FAQ 
