Ford Completes Sale of Volvo to Zhejiang Geely Holding Group

FordFord 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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cmhomey

I owned Volvos for 14 yrs and was sold on the safety and good reliability. Although still made in Sweden ( for now at least)the Chinese eventually will cheapen it up and make it another conquest in dominating the world economy.
I'm finished with Volvo, and will buy another brand going forward.
When is the last time Chinese manufacturing = quality?? Bye Bye Volvo ! The Chinese will do with it... what they do best..cheap imitations of everything.

August 03 2010 at 8:41 AM Report abuse +1 rate up rate down Reply
beemerboxer

I owned a couple of older Volvos way back when it was the safest used car to buy. Times change; Ford acquired it but never seemed to do much with it. Now the Chinese have added it to their hunting belts and one will wait and see. Ford did right by selling it; they are currently excelling with their new vehicles and will no doubt be a dominant player in the world auto market. Until it is sold to China????

August 02 2010 at 2:57 PM Report abuse +1 rate up rate down Reply
thesavagehenry

I really enjoy my Volvo - and had seriously thought "Volvo for Life" would be reality for me. However, selling to a Chinese corporation makes me sick. I know that we live in a global economy - however, when did Communism become acceptable to the American people? The folks at Ford dropped the ball.

August 02 2010 at 1:57 PM Report abuse +2 rate up rate down Reply
Fred

The car will still be made in Europe (mostly in Antwerp) and headquarted in Sweden. Ownership will be in China as it was previously in Detroit. The real question is whether the Chinese will siphon off the technology and try to transfer it to China. Sweden is slowly learning that their "wonderful" form of socialism leaves them completely non-competitive.

August 02 2010 at 12:24 PM Report abuse +1 rate up rate down Reply
Fred

The car will still be made in Europe (mostly in Antwerp) and headquarted in Sweden. Ownership will be in China as it was previously in Detroit. The real question is whether the Chinese will siphon off the technology and try to transfer it to China. Sweden is slowly learning that their "wonderful" form of socialism leaves them completely non-competitive.

August 02 2010 at 12:24 PM Report abuse -1 rate up rate down Reply
1 reply to Fred's comment
Nick

Socialist Swenden probably won't learn anything until they will be down the drain.

August 02 2010 at 1:13 PM Report abuse +1 rate up rate down Reply
Relevant Data

The uaw unions are at it again. They as usual are complaining about past wars we fought with countries we are now doing business with. With the Japanese they say don't trade with them because of World War II. Now with China they say don't trade with them because of the Korean War. Well, what about the fact that Democrats and it's SEIU union members went to Arizona by the hundreds or thousands to protest the Republicans there trying to stop Mexicans from coming across the border by the millions. Hey democrat unions, remember the Alamo?

August 02 2010 at 12:08 PM Report abuse +8 rate up rate down Reply
goatcars2

Volvo made the mistake of getting away from what it was famous for...safety. In the '70's ask anybody which was the safest car and all would respond without hesitation...Volvo!! They should have kept the old 240 Sedan and stayed with a winning theme instead of trying to get glamorous and compete with every other brand on the planet. Volvo once ran an ad showing an amateur video of a 240 Sedan run off a narrow mountain road, roll over 5 or 6 times and as the camera continued to roll the driver got out, slowly assesed the dented 240, got back in and drove away....POWERFUL IMAGE!!!! Every husband and father in America would want his family in a safe Volvo!!!! Always market what made you famous....a lesson Volvo never learned!!

August 02 2010 at 11:57 AM Report abuse +5 rate up rate down Reply
aponcherello

I would never trust my life at the wheel of a car made by a Chinese company. It's bad enough some of the parts currently in use in my car are made in China, but a whole car.....NO WAY.

August 02 2010 at 11:50 AM Report abuse +7 rate up rate down Reply
braun1994

I mean UAW cars.

August 02 2010 at 11:27 AM Report abuse +2 rate up rate down Reply
braun1994

I wont buy American made cars because they voted for obama and got a special deal on their insurance plan for their vote.

August 02 2010 at 11:27 AM Report abuse +4 rate up rate down Reply