Ford agrees Volvo sale to Geely

From BBC UK

Volvo has been for sale for a year Ford has agreed the terms of the sale of its Swedish business, Volvo Cars, to China's Geely. Ford said "some work still remains to be completed" but the deal will be finalised early next year ahead of completion soon after Easter. Ford put Volvo up for sale a year ago to help pay off its debt and make its business more focused. Geely was named preferred bidder in November. If completed, it will be the largest purchase by a Chinese car firm. ANALYSIS Emily Young, Business reporter, BBC News Agreement has been reached at last. Volvo will almost certainly be sold to Geely. The question for Volvo is whether its new Chinese owner will do more for the marque than Ford did. On one level, the decade-long US-Swedish partnership can be seen as a successful. They benefited from each other's technology and expertise. But although many new models have been introduced in recent years, Volvo sales have not increased much. That may change under Geely, which will market Volvo in the fast-growing Chinese market. Ford said that while the "substantive commercial terms" had been settled, financing still needed to be completed and government approval was also necessary. The update on the sale is necessary for Geely to apply for government approval of the deal and with it, it is thought, the firm's financial backing. No details were given of how much the deal is worth, but it is widely rumoured that Geely will pay Ford $2bn (£1.2bn; 1.4bn euros), less than a third of the $6.45bn Ford paid for Volvo in 1999. Ford said it expects to continue co-operating with Volvo Cars, but did not intend to retain a shareholding in the business after the sale. Benefits for all Industry observers say the sale is good news for Volvo. VOLVO First Volvo made in 1927 Bought by Ford in 1999 Employs 20,000 worldwide In 2008 sales fell 18.3% to 374,297 Will Swedes work on a Chinese menu? "In theory, the Chinese market could be an opportunity for Volvo," Nomura's auto specialist Michael Tyndall said. "It's a well-known brand, has a good heritage and a range of products that should appeal to the Chinese consumer." Equally, the deal should help Geely get into the Western market. It is thought that the main sticking point in the talks between Ford and Geely had been disagreement about how to deal with intellectual property rights - setting the parameters of Geely's use of Volvo's technology, such as its famous safety equipment, and the extent and cost of using any technology needed from Ford's research. Moving to China Professor David Bailey from the Coventry Business School said that he expects much of the Volvo production to be moved to China, which recently overtook the US to become the world's largest market for cars. GEELY Founded in 1986 Started as refrigerator parts supplier Employs 12,000 Production capacity of 300,000 cars a year Profile: Geely Automobile "I would expect development and research to remain in Sweden, and maybe some production, but the big scale production will probably come from China," he said. "In the long run the question is whether they can continue to develop Volvo's safety profile and advanced engineering technology" he added. Geely said that Volvo would continue to lead the trend of world auto technology in safety and environmental protection. "It will quickly increase its unique competitive status in the Chinese market," the firm added.

Inhabitat July 14, 2009 Hybrid Double Decker Volvo Buses Hit London Streets

by Jorge Chapa

London’s iconic double-decker buses recently received an eco update as six highly efficient hybrid Volvo vehicles hit the streets for the first time. The new B5L two-story buses retain their classic red color, but under the hood a hybrid drivetrain saves 25% on fuel consumption while significantly reducing emissions and noise. The buses have entered service in the city as part of a trial run, and if all goes according to plan they will be joined by additional vehicles in the future.

Volvo’s new B5L buses feature a parallel hybrid I-SAM (Integrated Starter, Alternator, Motor) system, which uses an electric motor and a hybrid engine to power the vehicle. The buses can go up to 12mph in electric mode, after which, the diesel engines steps in. The speed of 12mph might not sound like much, but it is quite perfect for most bus routes.

The vehicles are operated by the bus operator Arriva London and last week they joined several other hybrid bus lines in the city. Managing Director of Arriva London Mark Yexley stated, “With the support of Transport for London, this is a pioneering project for Arriva to be involved with. These six vehicles will provide an excellent opportunity to assess the benefits and the whole life cost proposition of hybrid technology in a real life day to day operating environment.”

Top 10 Turbocharged Cars of All Time (With Video!)

Turbochargers are fast becoming ubiquitous. It's not because the whole car-buying world is crying out for huge surpluses of horsepower, but because turbos are simply the most elegant way to help small engines produce power while still delivering decent fuel economy. That's been obvious for decades. The development of turbocharged production cars hasn't been a steady march, but more a series of intermittent storms; big leaps forward, followed by fallow periods lasting years. In fact, some of the first turbocharged cars, like the Chevrolet Corvair Monza and Oldsmobile F-85 Jetfire introduced by GM for the 1962 model year, led to few sales and no significant production legacy. But since the mid-1970s certain turbo cars have pushed the art forward significantly. These are ten of the most important and prominent.

By John Pearley Huffman

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1. 1976 Porsche Turbo Carrera

Whatever you call it – 911 Turbo, Turbo Carrera, Turbo Porsche, 930, or just plain Turbo – this is it: The great icon of the turbocharged art. It's more than merely a Porsche 911 with a turbocharger, it's a cultural touchstone for anyone who grew up during the '70s. It's the car that inspired teenagers to put a poster of it up in their dorms next to that one with Farrah Fawcett—and the Lamborghini Countach of course. It's the car upon which the awesome 934 and 935 race cars were based, and there has never been a more thrilling or dominant race car than the 935. With its flared fenders and whale-tail spoiler, this is the car virtually everyone thinks of when the word "turbo" comes up in conversation.

But none of this is the reason why the original Turbo Carrera is so important. Porsche had been ludicrously successful in Can Am racing with its turbocharged 917/30 race machine so it made sense to port that experience over to the 911 where it could elevate Porsche's road car into a serious competitor against Ferraris and Lamborghinis. But making a turbocharged engine that was both powerful and civil enough for everyday driving wasn't going to be easy. Unlike previous turbo car builders, Porsche was able to pair the Turbo Carrera's turbocharger with Bosch's new K-Jetronic electronic fuel injection.

The combination of turbocharging paired with the precise fuel metering of electronic fuel injection was almost magical. It was now finally possible to produce a turbo engine that didn't detonate or starve for fuel throughout its operating rev range. That first Turbo Carrera wasn't an easy car to drive fast (there was plenty of turbo lag), but it was just about the first turbo car so capable of reliably puttering around town.

That Carrera's 3.0-liter flat Six was rated at just 234 hp and was available only with a four-speed manual transmission. As time passed, Porsche has sustained the 911 Turbo legend by constantly upgrading and tweaking its successors. Today, the beastliest 911 Turbo of them all is the 2009 GT2, which slams along with 530 hp. 'Nuff said.

This video is in Norwegian … you do speak Norwegian, right?

Test Driving the 1976 Porsche Turbo Carrera

CLICK FOR MORE The Top 10 Turbocharged Cars of All Time
1. 1976 Porsche Turbo Carrera	2. 1978 Saab 99 Turbo	3. 1984 Ferrari 288 GTO and 1987 Ferrari F40	4. 1978 Mercedes-Benz 300SD	5. 1984 Buick Grand National and Regal T-Type
6. 2005 Bugatti Veyron	7. 1994 Toyota Supra Turbo	8. 1982 Volvo 240 Turbo Wagon	9. 1992 Mitsubishi Lancer Evolution	10. 1979 Ford Mustang Turbo