Official: Volvo sold to China's Geely.

[Shy Guy]

 

After numerous reports out of both Gothenburg, Sweden, and Dearborn, Michigan, Ford Motor Company confirmed that it has reached conclusive sale terms for its Volvo luxury car unit with Zhejiang Geely Holding Group Company Limited.

 

Ford and Geely say they hope for a “definitive sale agreement” to be signed in the first quarter of 2010. The automakers say that all internal hurdles have been tackled and that the deal awaits only final documentation, financing details and government approvals. Analysts say that few challenges remain.

 

Ford says that it will continue to work with Volvo on certain levels even after the sale, although the automaker did not elaborate on its plans. Ford will not continue to hold any share in Volvo after the sale.

 

Volvo is the last remaining brand in Ford’s ill-fated Premier Automotive Group portfolio, which once included Jaguar, Aston Martin and Land Rover. The automaker says it is now concentrating on just its three core brands, Ford, Lincoln and Mercury, although the future of the latter is also in doubt.

The sale of Volvo marks a turning point for Ford, Sweden and China.

 

It officially concludes Ford’s expansion efforts under former leader Jacques Nasser, it sends Sweden’s already crumbling auto industry into further disarray and it means that substantial first rate safety, engineering and assembly technology will now be directly available to a Chinese automaker for the first time.

 

Source: http://www.leftlanenews.com/update-ford-geely-near-agreement-on-volvo-sale.html

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This is a bad move imo, it will give Chinese access to Volvo technology which Ford uses a lot, well at least its better than Saab's death...

[CarMadMike]

I think the future of Geely will be interesting, i've never liked anything they've produced, now they've got the tech, lets hope they get some decent designers...

[Car Freak]

I don't understand though, why Ford would want to offload Volvo. Wasn't it quite a profit-maker the whole time?

[weishen]

Maybe joining chinese has its benefit ,just like Hummer do.

[KoenigseggBG]

Ford, you muppets, how could you sell Volvo to the stupid Chinese copycats? :cry:

[Guest turbo lag]

At least (it could) make Chinese cars just a tad safer.

[Shy Guy]

I don't understand though, why Ford would want to offload Volvo. Wasn't it quite a profit-maker the whole time?

 

It was actually losing cash, which is why Ford sold it, so it can focus on its "core" brands(Even though Mercury is pretty much dead, and Mercury and Lincoln aren't available outside North America)