Volvo may receive lifeline from Belgian government
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From: Charleston, WV
Volvo may receive lifeline from Belgian government
I'm sure this one wont get mentioned by the media either......
http://www.motorauthority.com/volvo-...overnment.html
Despite Volvo being a Swedish-based company, the trouble stricken carmaker may have to look to the Belgian government for financial aid to help keep it on its feet. Volvo currently operates a plant in the Flanders region of Belgium, and the Flemish Premier Kris Peeters has been in talks with Volvo CEO Stephen Odell in regards to securing loan guarantees for the carmaker to the tune of €300 million ($418 million).
Belgian media outlets are reporting that Volvo and the Flemish Premier are hoping to work out a deal by June 7, just days before the region’s elections. Should the loan guarantees go ahead, there will be restrictions on where the cash can be used, with the Flemish government stating to Automotive News that the guarantees would not apply for any "factories anywhere other than in Flanders".
Securing a future for its auto workers appears to be the Flemish government's top priority at this point, and in this vein it will be examining a business plan from Volvo, as well as wanting to figure out a deal that takes into account a possible sale of Volvo. Peeters stated that he would require "firm commitments" and assurances about "Volvo's long-term future" before he could agree to any loans.
While Volvo is actually based in Sweden, talks with the Swedish government are failing to progress following a strategic review from Ford that left Volvo in an uncertain position. The European Investment Bank has already given the ailing company a loan of €200 million ($279 million), but it requires significantly more funding to help it stay in shape.
As for the likely sale of Volvo, there are reportedly five bidders interested in the company and a decision on a final buyer may be announced as early as next month.
Belgian media outlets are reporting that Volvo and the Flemish Premier are hoping to work out a deal by June 7, just days before the region’s elections. Should the loan guarantees go ahead, there will be restrictions on where the cash can be used, with the Flemish government stating to Automotive News that the guarantees would not apply for any "factories anywhere other than in Flanders".
Securing a future for its auto workers appears to be the Flemish government's top priority at this point, and in this vein it will be examining a business plan from Volvo, as well as wanting to figure out a deal that takes into account a possible sale of Volvo. Peeters stated that he would require "firm commitments" and assurances about "Volvo's long-term future" before he could agree to any loans.
While Volvo is actually based in Sweden, talks with the Swedish government are failing to progress following a strategic review from Ford that left Volvo in an uncertain position. The European Investment Bank has already given the ailing company a loan of €200 million ($279 million), but it requires significantly more funding to help it stay in shape.
As for the likely sale of Volvo, there are reportedly five bidders interested in the company and a decision on a final buyer may be announced as early as next month.
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From: Melbourne, Australia
Interesting. It's becoming a trend lately. 
But on a slightly different note... how many here know that VW is 20% state owned. Yes, the most popular car maker in Europe and destined to be number two automaker (to Toyota) is providing good returns to Germany.
But on a slightly different note... how many here know that VW is 20% state owned. Yes, the most popular car maker in Europe and destined to be number two automaker (to Toyota) is providing good returns to Germany.
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From: Albany, NY
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From: Richmond, VA
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From: Payson, AZ USA
You are so right................... $418 million, from the Belgian government, for a specific Belgian Volvo plant, that will be sold with the rest of Volvo, is EXACTLY the same as the $19.4 Billion that GM has gotten from us (you know, us US taxpayers), and the pending $50 billion plus that they will get after BK................ also from us.
Yeppers, exactly the same.
Yeppers, exactly the same.
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Joined: Nov 2000
Posts: 2,712
From: Ontario
You are so right................... $418 million, from the Belgian government, for a specific Belgian Volvo plant, that will be sold with the rest of Volvo, is EXACTLY the same as the $19.4 Billion that GM has gotten from us (you know, us US taxpayers), and the pending $50 billion plus that they will get after BK................ also from us.
Yeppers, exactly the same.
Yeppers, exactly the same.
The fact remains, Volvo is still owned by Ford, and they are seeking bailout money from a government. Are you disputing that?
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Joined: Dec 2000
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From: City of Champions, MA, USA
What you all forget is its all based on the size of the company. I would like to see the ratios of loans/bailouts to total revenue for all these companies including GM. $1 million is nothing to GM, but that is a fortune to one of us.
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From: Payson, AZ USA
BTW, noone has ever claimed that Ford has not sought assistance from ANY government, as there have been articles on this for some time. They have continually said that they have not, and will not seek assistance from the US government.
In other words, they will not have their hands in MY pockets.
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The purpose of these types of posts are clear as day. Some people are trying to deflect the spotlight, but in this case it would be no different than if a little brother who just set the house on fire cried fowl and pointed out that his little sister stepped on the rose garden on the way out of the burning house.
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Joined: Jan 2000
Posts: 10,285
From: Albany, NY
The purpose of these types of posts are clear as day. Some people are trying to deflect the spotlight, but in this case it would be no different than if a little brother who just set the house on fire cried fowl and pointed out that his little sister stepped on the rose garden on the way out of the burning house.
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Joined: Jan 2009
Posts: 429
Oh c'mon! I love GM cars and have always considered myself a GM guy all the back to crossfire injection systems. Hell I can remember the very day my father pulled into the driveway in my uncle's red Corvette. But that doesn't mean I have blind loyalty to a company that has failed, is failing and will soon be under the control of the federal government which was acquired in what most on here would be considered in a way that is counter of our most basic economic principles and in a manner that we as a country have criticized for decades when it happened in other countries. If anything I'm looking at this is much more objective manner than some of the other people on here.
So why don't you counter my point instead of just calling me names?
Last edited by El Duce; May 28, 2009 at 09:49 PM.
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