Refreshing or Revolting: 2011 Ford Explorer
The re-imagined 2011 Ford Explorer is now a Taurus-based crossover like the Flex, but the stylistic differences between the two cars could not be more pronounced.
The same is true if you compare the 2011 Explorer to the outgoing model, which wears more traditional SUV styling to go with the vehicle's higher towing and off-roading abilities. The 2011 Explorer has proven to be one of the most anticipated vehicle launches we've seen around the Motor Trend offices in a while and we want to know what you think: Does the new Explorer's design improve upon the 2010 model's bodywork?
In the front, the Explorer has a giant three-bar grille that's reminiscent of the one on the Taurus. The 2010 Explorer is far more conservative, with rectangular headlights and foglights.
Side surfacing keeps things interesting on the side view of the 2011 Explorer, but it's really the C-pillar that's most different between the two Ford SUVs. On the 2011 crossover, the body-colored pillar leans forward while the 2010 Explorer's C-pillar is more upright.
In back, that sense of motion established by the C-pillar continues, with the rear windshield angled forward, in contrast to the outgoing model. The new Explorer's taillights stretch much further onto the side of the car than the ones on the old car.
Dual exhaust and a chrome bar stretching from one taillight to the other finish off the exterior changes on the new Explorer.
While some might prefer the sheetmetal of the outgoing Explorer over the new one, the 2011 model slaughters the 2010 model on the interior. We'll let the photos do the talking.
Overall, though, has Ford improved the styling of the vehicle wearing the Explorer nameplate or are the automaker's designers simply trying too hard? Tell us in the comments section below.
Last time, the 2011 BMW X3 was our featured Refreshing or Revolting vehicle. Reception to the restyled crossover was mostly negative.
"It was ugly then and it's still ugly now," said vinnieboiblue.
Northof49th was more specific: "Revolting. Particularly the front. Looks like a child threw the pieces together."
Delspencerdeltorro was more positive: "They're getting warmer, but it's still revolting."
Photo order from top to bottom: 2011 Ford Explorer front view, 2010 Ford Explorer front view, 2011 Ford Explorer rear view, 2010 Ford Explorer rear view, 2011 Ford Explorer interior, 2010 Ford Explorer interior.
Thread of the Day: Which Brand Could Be The Next to Go?
In two short years, we've witnessed the demise of a few brands (Hummer, Mercury, Pontiac, Saturn) plus some growth (Tesla) as well. Our economy still appears to be riding out a rough patch and, as we all learned over the previous 24 months, economic circumstances can swing wildly. Despite the influence of the auto industry, it is, in the end, a very big business and companies need to perform. That said, and with the latest departure of Mercury, which one brand do you believe is teetering on the edge of extinction in the United States?
Thanks to Will_Pittenger for inspiring today's TOTD!
Our Cars: 2010 Volkswagen Routan - Interior Issues
Mileage: 6912
Months in Fleet: 4
For deal-seekers who don't want to pay for a V-6 powered 2011 Toyota Sienna or 2011 Honda Odyssey, the Volkswagen Routan isn't a bad choice but it's not really a great one either.
Driving the VW around Southern California freeways and city streets with a few adults inside, I found the interior to be missing a couple details that would bother me continuously if the Routan was my daily driver.
In traffic, I appreciated the nicely bolstered seats but the front seat armrests were too small to be of much comfort. Also, all the HVAC controls are far lower than they should be and aren't angled up, toward the driver. Still, the Routan's interior is more pleasant than the Chrysler on which it's based.
Given the fact that consumers will soon get to choose between an all-new Nissan Quest, Honda Odyssey, and Toyota Sienna, the Volkswagen might need more than just zero-percent financing for 72 months to sell. Then again, the Routan may not get Stow-N-Go seating but only Volkswagen has three years or 36,000 miles of free scheduled maintenance.
We Hear: Durango Name Stays, Will Be Sold as a Dodge; What Do You Think?
As Chrysler prepares to reintroduce the Durango SUV, there's been rampant debate on the Web as to whether the Durango name will remain and whether it will be badged as a Dodge or a Ram. We've received a tip today that clears both of those issues up.
A little over a month ago, reports surfaced online claiming that the Durango name would be dropped for the third-generation SUV and replaced with the name Magnum, last seen on the company's ill-fated wagon. Since then, there's been a great deal of speculation over what nametag the new 'ute would carry. Now, we jump into the fray with a hot tip of our own.
According to a dealership employee, Dodge and Ram dealerships were recently updated on the new product and informed that it will in fact be called Durango, not Magnum. Calls to a Dodge spokesperson were fruitless due to the late hour in Detroit at the time of this writing. Calls to a Ram spokesperson, however, revealed that the Durango will be a Dodge product, not a Ram product, settling another debate over the well-concealed new vehicle. That of course means it will not be getting a set of Ram Horns on the hood, but instead Dodge's new script and slash logo.
What do you think? Is Dodge right to stick with the Durango name, or should the new SUV start with a clean slate? Tell us which name you prefer in the comments below.
Pumped Up: Austrian Tuner Boosts Nissan GT-R to 572 Horsepower
The Nissan GT-R is already an incredible sports car, but it appears Godzilla isn't quite good enough for Königseder Tuning. The Austrian tuner recently released a new range of accessories designed to dress up Nissan's halo car, while injecting it with our favorite ingredient: more power.
As other tuners know, reflashing a vehicle's engine computer and dropping in a new air filter are easy tweaks that instantly improve performance. Königseder appears to adhere to this principle, as they've reprogrammed the ECM, added a drop-in K&N air filter, and bolted on a new titanium exhaust system. According to the tuning house, the twin-turbocharged 3.8-liter V-6 is bumped from 485 horsepower to a whopping 572 ponies. The Austrians claim their tuned GT-R can blast from 0 to124 mph in a scant 9.8 seconds -- in comparison, our testing revealed an 11.8 second sprint from 0 to 120 mph.
To help its GT-R stand out from a crowd of other R35 cars, Königseder added a new front lip spoiler, side skirts, and 21-inch HRE wheels wrapped with Yokohama Advan Sport tires. The slammed stance is due in some part to a revised suspension -- the tuner says it's added an adjustable coilover suspension kit from KW to help keep the speed machine firmly planted to the asphalt.
Sounds interesting, but we've already witnessed a number of tuned and special-edition GT-R models launch worldwide, designed to improve upon the car's already incredible performance. Does the GT-R need further tuning? What modifications would you choose to build the ultimate Nissan sports coupe? Send us your recipes in the comments section below.
Source: Königseder Tuning
GM Bumps 2012 Volt Production Goal to 45,000; Obama Drops By For a Drive
The 2011 Chevrolet Volt has been driven, priced, and is nearly ready for the masses. Seen as a vital component of General Motors' future, President Obama recently stopped by the Volt's Hamtramck plant for a quick spin.
As the President toured the facility and drove a Volt for 10 feet (which he described as "pretty smooth"), Chevy also announced it would be bumping Hamtramck's production total to 45,000 units in 2012. The current figure of 30,000 was deemed too low for demand as GM reports over 25,000 people have joined its interest list over the span of a few weeks. The Volt will first be launched in California, Connecticut, Michigan, New York, New Jersey, Texas, and Washington, D.C., although an exact dealer schedule has not been revealed yet. The first few production examples are due off the line by the end of the year and the Volt starts from $41,000, including a $725 destination charge. A $350-per-month lease will be offered to eligible customers.
Sources: General Motors, Detroit News
Heide Turns Dodge Challenger Into Classic Charger Daytona, Plymouth Superbird
Ask a Plymouth aficionado which model best represents the defunct brand and you will likely hear the word "Superbird." If you long for your own high-spoilered muscle car, Heide Performance Products will sell you the parts to transform your current Dodge Challenger into a modern imitation of the Road Runner Superbird and its sibling Charger Daytona.
Quite possibly the quintessential Plymouth, the Superbird was originally developed for NASCAR in the early 1970s and has since become a coveted collector's vehicle. The cone-like front nose and tall rear wing are the trademarks of the Superbird and Charger Daytona, and if that's your cup of tea, Heide can help your modern-day Challenger.
The base package starts from $16,395 and includes a new front end, a rear wing, requisite graphics, forged aluminum wheels, a revised gauge cluster, new shifter, and floor mats. Customers desiring more looks and performance can select from a variety of additional options, including a new hood, ground-effects kit, custom paint, tires, supercharger, Magnaflow exhaust, and coil-over suspension.
Source: Heide Performance Products
Nissan Revises Rogue for 2011, Unveil Set for This Weekend's Annual Z Convention
Four years into production of its Rogue crossover, Nissan has made some revisions to the 2011 model. The revised Rogue, which will debut this weekend at the International Z Car Convention, features new styling elements as well as revised option packages.
While its mechanicals have remained largely the same, Nissan's altered the Rogue's styling and feature content. To closer match the styling of its Murano sibling, Nissan resculpted the Rogue's front fascia, incorporating more pronounced fog lights and a slightly larger lower grille opening. Chrome molding was added to the doors and license plate surround, giving the Rogue a more upscale look. The gauge cluster receives a slight upgrade, and the center display is now fully digital and displays more information.
Low-rolling resistance tires and an underbody cover will improve fuel economy. FWD models are now capable of 22/28 mpg (city/highway) and AWD models can achieve 22/26 mpg. The EPA figures represent a 1 mpg city improvement for AWD models, and 1 mpg highway for FWD models.
The Rogue is now available in two trims, the S and SV, with two available upgrade packages. The base S model now features a second 12-volt outlet, an outside temperature display, cargo and mood lighting, and an illuminated visor mirror. The SV, which replaces the SL, comes standard with six-way power-adjustable seats, rearview monitor, Bluetooth, 4.3-inch infotainment screen and intelligent key, many of which were options on the SL. The Premium package, available only on the SV trim level, adds a 5-inch navigation screen, moon roof, automatic air conditioning and automatic headlights. On top of the Premium package, the SL Package adds leather seats and steering wheel, heated front seats and mirrors, and an eight-speaker Bose audio system. The Rogue Krom, which debuted in December, receives a new set of 18-inch wheels that replaces 17-inchers.
After making its first public appearance at Nissan's North American headquarters in Nashville, Tenn., during the annual International Z Car Convention, the 2011 Rogue is scheduled to go on sale August 13. This year's convention also commemorates the 40-year anniversary of the Z.
Source: Nissan
Chrysler to Keep Sterling Heights Plant Open, Add Shift in 2011; Obama Visits
Chrysler has executive company today, with President Barack Obama touring its Jefferson North assembly plant, and it's decided to announce some good news while it has the President's attention. Chrysler/Fiat CEO Sergio Marchionne announced that the automaker's Sterling Heights Assembly Plant, previously slated for closure in 2012, will remain open and will pick up a second shift in the first quarter of 2011.
The added shift is expected to fill 900 job positions at Chrysler and require 500 new supplier jobs. The Sterling Heights plant currently builds the Chrysler Sebring and Dodge Avenger - two cars undergoing revamps for the near future.
During a conference call earlier this week, Marchionne said of the Sebring/Avenger revamp, "We have carried out significant surgery on the architecture of those cars and made significant improvements of the interiors."
A revised exterior is rumored for both models. When the new Sebring launches, it will be the first Chrysler vehicle to use the automaker's new six-speed dual-clutch automated manual transmission. The Sebring will also receive a version of Chrysler's new Pentastar V-6 engine.
Chrysler also announced plans to ramp up its sales efforts abroad. The automaker expects to sell nearly 200,000 vehicles in Europe and South America next year -- a figure that is roughly double the number of vehicles Chrysler plans to sell in those areas by the end of 2010.
Stay tuned to Motor Trend Online for all your future car news, including more on the updated Chrysler Sebring and Dodge Avenger.
Source: Chrysler
Toyota Adds Performance Off-Road TX Packages to 2011 Tacoma Line
Toyota will add two new performance packages to its 2011 Tacoma compact pickup truck based on positive reaction by the consumer aftermarket.
The packages, based on equipment shown at the 2009 SEMA show, consist of performance-enhancing equipment as well as cosmetic upgrades. The T X and T X Pro packages supplement the Tacoma's optional Off-Road package, which adds an electronic locking rear differential; tuned stabilizer bars, springs, and shock absorbers; and larger, off-road-ready tires.
To that, the $1699 T X package adds 16-inch black Toyota Racing Development wheels and even larger trail tires. Exterior enhancements, such as side steps, stainless steel exhaust, and a graphics package round out the changes.
The $1699 T X Pro package takes a different approach to tuning the Tacoma. Instead of focusing on cosmetic upgrades, those who opt for the Pro package add a TRD-tuned performance exhaust system. The result -- a slight increase in horsepower, but a much deeper exhaust note.
Both packages represent savings over ordering the parts a la carte, and are backed by a three year/36,000-mile warranty. Buyers will be able to order the T X Pro package this month, and the T X package will debut in September.
Will in-house customization interest Tacoma buyers? Let us know what you think in the comments section.
Source: Toyota
Thread of the Day: What's The Worst Design Feature On Your Vehicle?
Let's face it: few, if any, vehicles are absolutely, 100-percent perfect. There's always going to be some little niggle, whether it's the dinky cupholders, difficult-to-reach spark plugs, or a side window that mysteriously stops working at the most inopportune moments. What is the worst design feature on your vehicle?
Among MT posters, all sorts of different complaints surfaced, including but not limited to headlight problems and difficult maintenance-related issues. Let's hear yours in the comments below.
Thanks to lostchildren for inspiring today's TOTD!
Our Cars: 2010 Ram 2500 - Hauling Air
Mileage: 5378
Months in fleet: Three
I've really grown to like this whole "luxury truck" idea that's been developing over the past 5-6 years. Our Ram 2500 happens to be one of the most luxurious vehicles in the fleet, fitted with features like a booming stereo, heated and cooled seats, and high-quality leather that not that long ago would have gotten the owner pelted with a variety of impolite words questioning his manhood. In fact, last year Chevy ran several ads of that nature, the infamous "man step" spot being the most memorable one.
This luxury makes it easier to deal with the negatives of driving a truck when hauling nothing but air, the biggest one being freeway hop. Despite not having the Ram 1500's trick coil suspension in the rear, the 2500 manages it quite well. Its certainly a far cry from the teeth-clattering rear-end hop of our old Toyota Tundra long-termer.
The best part, however, is the smooth Cummins inline-six. Though not the quickest off the line, once it gets up to speed, it moves with surprising urgency. Passing maneuvers will certainly not require any extra care beyond making sure there's enough space for a semi tractor to fit, since this truck is about the same size.
That said, if you're always going to be hauling air or merely a light load, a Hemi-powered Ram 1500 is probably more up your alley. But if there's heavy work to be done, even occasionally, the Cummins-powered Ram 2500 is a great choice.
Photography by Jessica Germiller and William Walker
Chevrolet Piloting Dealer Sales App for iPad, iPhone, iPod
"Getting with the times" means staying up to date, and that can mean making use of the latest technology. General Motors wants its Chevrolet dealers to get with the times by using a new sales app that will be available with the Apple iPad, iPhone, and iPod touch.
The app currently being piloted is called Chevrolet Dealer, and it's loaded with the entire Chevy lineup, from car to truck to SUV. Salespeople will be able to use Chevrolet Dealer to select and view interior and exterior colors and options, along with search for neighboring inventory and look up lease and purchase options. GM hopes the app will boost sales and customer relations.
Hendrick Chevrolet in Cary, North Carolina, has been piloting the app since July 9 and GM expects to roll it out across the nation this fall.
"Chevrolet Dealer allows us to spend less time behind our desks and more time on the showroom floor with our customers," said Joel Smith, retail operations manager at Hendrick Chevrolet. "Our customers have been wowed when we are able to show them video and help them choose options, all on the iPhone."
Source: General Motors
Exclusive: Toyota Drops Four-Cylinder 4Runner for 2011
According to sources at Toyota, the four-cylinder version of the venerable 4Runner is being discontinued after just one model year. The main reason for the drop is the extremely low take rate, with the V-6 model accounting for well over 90 percent of 4Runner sales.
Why such low interest? The 2.7-liter I-4 doesn't offer much of a fuel economy advantage versus the larger 4.0-liter V-6 - especially when considering its 113-horsepower and 100 pound-foot disadvantage. In fact, EPA ratings for the two are just a single mpg apart from each other, registering at 20 mpg combined city/highway for the smaller engine and 19 mpg combined for the V-6 in the same SR5 2WD trim. And any way you slice it, 157 horsepower and 178 pound-feet of torque isn't a whole lot when you have nearly 4800 pounds of curb weight to move around.
No word on how many four-cylinder 4Runners were sold, but we estimate the figure to be less than 1000. That would make this frugal 4Runner one of the rarest Toyotas of the last several decades.
Stay tuned to Motor Trend Online for more information on the 2011 Toyota 4Runner tomorrow.
Ford Windstar Probe Widens Scope After Front Subframe Receives Complaints
Back in May, we reported Ford's old Windstar was being scrutinized by the National Highway Traffic Safety Administration for possessing possibly defective rear axles. After receiving additional complaints and calls for inquiry, NHTSA regulators have decided to investigate the front subframe as well.
Both the front subframes and rear axles from the 1999-2003 Windstar have appeared to be especially susceptible to corrosion, particularly in the "salt belt" states where road salt is used extensively. The NHTSA is conducting two investigations and the ongoing probe could eventually lead to recalls. Up to 900,000 vehicles could require repairs.
Not unfamiliar to being recalled, the Windstar, which was offered from 1994-2003, has already dealt with 10 recalls. The latest was in 2009 over potential fire-starting cruise-control deactivation switches.
During the Windstar's run, Ford built 2.3 million minivans.
Source: Automotive News (Subscription required)
Determined in the Dirt: Subaru Unleashes 2011 WRX STI Rally Cars for X Games
Seeing as Subaru tinkered with its roadgoing Impreza WRX STI for the 2011 model year, we're not too surprised it also revised the racing version. In fact, the rally-ready 2011 WRX STI cars were recently unveiled this morning, just ahead of their competition debut at the X Games SuperRally in Los Angeles.
Although Subaru no longer competes in the FIA's World Rally Championship, the automaker does continue to field vehicles in the North American RallyAmerica series. To build these vehicles, Subaru shipped stock 2011 WRX hatchbacks out to partner Vermont SportsCar, which transformed them into veritable rally cars. VSC gutted the interior of all components, and all body seams were welded for increased rigidity. A full roll cage was added, as were flexible Kevlar fuel cell tanks, carbon fiber door panels, custom dashboards, fire suppression systems, and Recaro racing seats with full harnesses.
In stock form, a 2011 STI mates a 305-horsepower, turbocharged 2.5-liter flat-four with a six-speed transmission. For the RallyAmerica series, however, VSC replaced that driveline with a turbocharged boxer four and a heavy-duty five-speed manual transmission sourced from KAPS. Despite running a 45-mm restrictor plate mandated by the series, the race-spec 2.0-liter engine cranks out an astounding 500 horsepower and 560 pound-feet of torque -- roughly 197 horsepower and 109 pound-feet more than the team's previous rally cars.
Outside, the car differs little from a stock 2011 STI, although it is coated with a swarm of sponsor stickers. Underbody components -- including the beefy suspension parts sourced from EXE-TC Competition Suspension -- are protected from dirt and debris by quarter-inch-thick aluminum skid plates. Wheelwells now support large mud flaps, while the rear spoiler is ditched in favor of a larger wing, which helps increase downforce.
"The team has worked very hard to get these vehicles ready for the X Games," said Subaru driver Travis Pastrana. "The competition is going to be tough, but I am confident that our STIs will be the cars to beat."
Pastrana is so confident, in fact, that he issued a taunting video aimed squarely at ex-teammate Ken Block, who defected to drive cars for Ford. Pastrana boasts that his team and his car will be the ones to beat. We'll see if that's the case come Saturday, when the rally portion of the X Games kicks off. Subaru's secured nine medals since rallying was added to the X Games docket - are more medals in order?
Source: Subaru
Popular Porsche: 25,000th Panamera Rolls Off Assembly Line
Just short of being on the market for a year, the Porsche Panamera marked a milestone when the 25,000th example rolled off its Ingolstadt, Germany assembly line this week.
Rolling off the line in Ingolstadt, Germany, the milestone model was a Ruby Red base Panamera. Featuring a 3.6-liter V6 that produces 300 horsepower and 295 pound-feet of torque, the Panamera will soon embark on its transatlantic journey to a customer in the U.S. The automaker says that of the total production thus far, some 5000 units have been delivered to U.S. customers.
Porsche won't get specific about numbers, but it says its V-6 is winning the hearts of customers worldwide. Porsche's first-ever sedan is doing surprisingly well in the U.S due in part to the Panamera's pricing structure. While the base V-6 starts at $75,350 (including a $950 destination fee), the Panamera S -- which employs a 4.8-liter V-8, making 400 horsepower and 369 pound-feet of torque -- starts at $90,750, a healthy $15,400 premium over the base model. The range-topping Panamera Turbo has an MSRP of $136,250.
Following the launch of Porsche's hybrid Cayenne this fall, Porsche has plans to augment Panamera sales by offering a Panamera hybrid. Will customers be receptive to a hybrid, or too focused on Porsche's electric car news to notice?
Source: Porsche
MTM Details Tuner Updates For Audi RS 5
The Audi RS 5 hasn't been confirmed for the United States, but the latest four-ringed two-door has already received a bevy of modifications courtesy of German tuner MTM.
Long recognized for its exploits within the Volkswagen enthusiast crowd, MTM's new products for the RS 5 include a stainless-steel exhaust system ($3919); a new ECU that removes the 155-mph governor and bumps maximum speed to 188 mph ($1958); and a variety of cast and forged wheels ranging from 19 to 21 inches in diameter ($2939 to $9978 per set). Other accessories include wheel spacers ($163) and a TV cable ($269). Revisions to the air suspension are coming, although pricing and a release date have not been issued. MTM's tuning line will likely obtain more options as the RS 5 gains traction in the driving community.
The current estimated base price pegs the RS 5 to start in the low-$70,000 range. Powered by a 4.2-liter V-8 with 444 horsepower and 317 pound-feet of torque, the quattro-driven coupe joins Audi's vaunted RS group in time to do battle with the BMW M3 and Cadillac CTS-V.
Source: MTM
Ford Fiesta, Chevrolet Cruze Among First to Undergo Stricter NHTSA Crash Testing
The first 55 cars, trucks, vans, and SUVs to be tested by the National Highway Traffic Safety Administration under its more difficult standards have been announced.
The 2011 BMW 5 Series, Ford Fiesta, and refreshed Honda Accord are just a few of the cars subject to the new testing. The new Honda Odyssey and Toyota Sienna are the only vans to be tested so far, while upcoming truck tests include full-size pickups from Ford, Ram, Chevrolet, and Toyota. A full list is below.
It will soon become more difficult for automakers to achieve a five-star crash test rating. The tougher frontal, side, and rollover tests mean you may start seeing fewer advertisements boasting five-star crash test ratings.
âThis new testing program significantly raises the safety bar for all vehicle manufacturers and will provide consumers with a great deal more safety information about the cars and trucks they want to buy," said Secretary Ray LaHood.
To simplify the ratings, the NHTSA will provide one overall safety score for every tested vehicle. Consumers will soon have more information about technologies like lane departure/blind spot monitoring and forward collision warning technologies. With those features slowly trickling down to inexpensive vehicles, we think that's probably a smart move.
Just as when the standards for fuel economy changed in 2008, NHTSA ratings for the new safety tests will not be comparable to those from the existing tests.
Below is the full list of 2011 vehicles selected for testing. Which vehicles do you think will bring the top scores in their segment?
BMW 5 Series
Dodge Caliber
Mercedes-Benz C-Class
Ford Fiesta
Ford Fusion
Ford Taurus
Chevrolet Cruze
Chevrolet Malibu
Buick Lucerne
Honda Accord
Honda Civic
Hyundai Sonata
Kia Forte
Kia Optima
Mazda3
Infiniti M37
Nissan Altima
Nissan Sentra
Nissan Versa
Toyota Camry
Toyota Corolla
Toyota Prius
Audi A4
Volkswagen Jetta
Honda Odyssey
Toyota Sienna
Jeep Grand Cherokee
Ford Edge
Ford Escape
Chevrolet Tahoe
Chevrolet Traverse
Chevrolet Equinox
Acura MDX
Honda CR-V
Honda Pilot
Kia Sorento
Kia Soul
Nissan Murano
Nissan Rogue
Subaru Forester
Subaru Outback
Lexus RX 350
Toyota Highlander
Toyota RAV4
Toyota Venza
Volvo XC60
Ram 1500 Crew Cab
Ram 1500 Quad Cab
Ford F-150 Super Cab
Ford F-150 Super Crew Cab
Ford Ranger Extended Cab
Chevrolet Silverado 1500 Extended Cab
Chevrolet Silverado 1500 Crew Cab
Toyota Tacoma Double Cab
Toyota Tundra Double Cab
Source: NHTSA
Done Deal: Geely Could Officially Own Volvo by Early August
Just four months after signing an agreement to buy Volvo from Ford, Chinese manufacturer Geely is nearly ready to seal the deal. Pending final regulatory approval, Geely could own Volvo as soon as the first week in August.
Geely is buying Volvo for $1.8 billion, with the hope of a two-month turnaround to profitability and increased Volvo sales in China. At the March signing, Geely chairman Li Shufu explained that the purchase would allow Volvo access to new and emerging markets, and the Swedish character of the brand would not be diluted.
The sale has not been without hurdles. In early July, the European Union gave the sale its blessing, and the deal faced a number of regulatory and distribution issues prior to the March signing.
If the sale goes through, it will mark Ford's final divestment in European luxury brands, having already sold off Jaguar, Land Rover, and Aston Martin. Geely's $1.8 billion purchase price is less than one-third the price Ford initially paid for the Swedish brand. The two manufacturers expect the deal to be closed in the third quarter of 2010.
Source: Automotive News (Subscription required)