Ford has reached a deal to sell Volvo to Zhejiang Geely, a Chinese company that first started making cars just 11 years ago. The terms of the deal weren’t announced, but Ford’s take is estimated to be about $2 billion, a far cry from the $6 billion the company paid to buy Volvo in 1999. [More]
Next year’s Yugo is set to be the Chinese-made Geely 7151 CK—pronounced “JEE-lee,” as in “fra-gi-le.” The mid-sized sedan will be hitting our shores for around $10,000, making it by far the cheapest car in its class. But can you, in good conscience, purchase it?
Geely’s average cost for workers in China is $3.50 an hour. That compares with hourly labor costs of $73.73 for GM.
Considering the quality of cars coming out of GM over the last ten years, we think you most certainly can. Japanese and Korean cars started out as bargain-basement alternatives to Detroit steel, and even at current prices, tend to offer a much better car for the money. If the Geely ends up being a quality product, we welcome the destruction of one of America’s primary exports.