Sale to China doesn't harm Volvo RVs
07 April 2010
Author: Rachel Burgess
Residual values of current Volvos should not be affected by its recent sale to Chinese company Geely from Ford, according to RV expert Cap.
However, it said future RVs are impossible to predict with the information currently available.
"Much will depend on the details of the ownership plan, such as whether cars for the European market will be European-built as Geely currently pledges, along with the actual quality of future product under Geely ownership," said Cap spokesman Mike Hind.
"Given the right degree of autonomy, there is no reason why Volvo product should suffer in terms of image."
Geely bought Volvo late last month for $1.8bn (£1.2bn) from Ford in a deal which is the biggest overseas purchase by a Chinese car manufacturer.
It has pledged to keep Volvo as a separate company with headquarters remaining in Sweden but significant manufacturing is set to take place in China, making Volvos for Chinese consumers.