FROM REUTERS: One of the toughest struggles in the negotiations was just how interwoven Volvo had become with the wider Ford Motor Group including safety and in-car-entertainment equipment. Volvo shared engine platforms and parts with Ford brands, while it relied on hardware and electronic-architecture work done at Ford.
“Ford and Volvo are, to this day, still very intermeshed,” says Cox at Rothschild.
Leaks in October highlighted disagreements over patents and intellectual property rights that threatened to kill the deal. In the end, the takeover terms gave Geely some of the technology. Ford got to keep other bits, but has to license some of it to Geely for use in its own operations. That should allow Geely to improve the quality of its own cars, and grow sales. MORE»
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