Ford Motor (F) announced Monday that it has completed the sale of Volvo, its Swedish unit, to China's Zhejiang Geely Holding Group.
Geely put up $1.3 billion cash for Volvo and issued a note worth $200 million, Ford said in a statement. Ford expects to receive extra proceeds after a later price "true-up."
"We are confident Volvo has a solid future under Geely's ownership," said Alan Mulally, Ford's CEO. "At the same time, the sale of Volvo will allow us to sharpen our focus on the Ford brand around the world."
The two companies agreed on a purchase price of $1.8 billion in March.
Stephen Odell, CEO of Volvo, will return to Ford as group vice president and CEO of Ford Europe. Stuart Rowley, Volvo's CFO, will return as CFO of Ford Europe.
"Volvo is well positioned for the future with an exciting range of products that remain true to its core values -- safety, quality, environmental responsibility and modern Scandinavian design," Odell said.
Ford said it will continue to cooperate with Volvo, but it has not retained any ownership in the business.
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