Bye Bye Volvo! Ford Sells The Swedish Icon To Geely

Autocar reports:

Ford has entered into a definitive agreement to sell Volvo and related assets to Zhejiang Geely Holding Group in a $1.8 billion deal ((£1.2bn), it has been announced.

Following the agreement, the sale is expected to close in the third quarter of 2010. The deal will take so long to close because of the number of approvals required from governments and organisations around the world to clear the deal.

Geely will own Volvo outright, with Ford retaining no shareholding in the company. Ford paid £4.34bn for Volvo when it bought it in 1999, and Volvo has not made a profit for the company since 2005. Geely, founded in 1986, is China's tenth largest car maker.

However, Ford will continue to supply Volvo with powertrains, stampings and other vehicle components for unspecified periods. As part of the sale, Ford also has committed to provide engineering support, information technology, access to tooling for common components, and other selected services for an unspecified transition period...

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dlin - 3/28/2010 10:07:30 PM

+2 Boost

Ford is certainly smarter than GM.

LACMAN - 3/28/2010 10:13:49 PM

0 Boost

So Ford MoCo is just Ford products now. I guess since their recent turn around, this is neither good or bad news. Hmm, interesting.

veyron1001 - 3/28/2010 11:02:45 PM

+5 Boost

No ford was ever a looker either.

0to60 - 3/29/2010 1:25:13 PM

+1 Boost

So only white people are crying about this? Where are your stats to support that argument?

"It is better to be thought a fool, than to open your mouth and remove all doubt"

Agent00R - 3/29/2010 4:37:03 PM

+1 Boost

@Badgewhore

Pretty sure no one is "trippin'" over this.

Just sayin'

PS - let's keep race out of discussion here. Thank you.

Neverfollow - 3/29/2010 9:10:56 PM

+1 Boost

Pretty good deal for the Chinese I'd say. They now have access to somewhat sound engineering from a legitimate car company. It'll be interesting to see what they do with it. The biggest problem companies like Volvo, Saab and others have faced in the past is going up against the German juggernaut with all the financial resources they have to pay for relentless engineering development. Audi spent $3 billion euro on RD last year alone. Nobody but the Chinese have that kind of money in this economy.