Volvo, Geely Consider Car manufacturer Merger
China could soon have its first global carmaker, thanks to a planned merger involving two notable names in the automobile business.
Chinese car company Geely Holding Group is considering merging with Volvo Cars, the Swedish manufacturer. If the deal happens it would launch a new company worth some $30 billion and in the same value neighborhood as Ford Motor Co.
“A combination of the two companies would result in a strong global group,” Geely Holding Group Chairman Li Shufu said in a statement announcing the possible merger. “We look forward to working with Håkan Samuelsson, president and CEO of Volvo Cars, to further investigate this opportunity with the goal to strengthen the synergies within the Group while maintaining the competitive advantage and the integrity of each individual brand.”
Li, a billionaire businessman who is also Daimler AG’s largest shareholder, purchased Volvo from Ford in 2010. He has doubled the company’s sales since that time, according to Bloomberg News.
The mergers would maintain the unique identity of various brands under a single umbrella, including Volvo, Geely, Lynk, and electric vehicle brand Polestar. Together, they are expected to sell more than 2 million vehicles per year.
The move comes after Volvo scrapped a plan to go public in 2018, citing uncertainty about global trade policy. The new company would be listed first on the Hong Kong stock exchange.
Protection Under the Law for California Car Owners
Although the merger could be good for Geely and Volvo’s bottom lines, it is not clear whether the move would help either company improve the safety of their vehicles.
Last year, Volvo announced that it was recalling some 500,000 vehicles because of concerns about possible engine fires. The company said at the time that an engine defect that could cause it to melt and catch fire.
That is where the California lemon law comes in. The law requires car manufacturers to make certain repairs on vehicles while they are under warranty and to buy back or replace cars that the manufacturer is unable or unwilling to fix.
There is no specific number of repair attempts or requests that must be made before the buyback or replacement requirement kicks in. That is why it is important to consult an experienced California lemon law attorney. The law requires the manufacturer to pick up the tab for any legal fees a car owner incurs enforcing his or her rights.
Speak with a California Lemon Law Attorney
If you are a car owner or lessor who is grappling with your car’s manufacturer over repairs, an experienced California lemon law attorney can help. A lawyer can help you weigh your rights and options to ensure that the carmaker is held fully accountable.
At the Bickel Law Firm, we have represented hundreds of clients in defective vehicle cases in Southern California and across the state. We work tirelessly to get the people we represent the compensation they deserve.
Our offices are conveniently located in Los Angeles, San Diego and San Francisco. Call us at (888) 800-1983 or contact us online to speak with a California lemon law attorney today.