Volvo Cars sold to Geely, Ford to get US$1.8 billion
Ford Motor Company today announced it has entered into a definitive agreement to sell Volvo Car Corporation and related assets to Zhejiang Geely Holding Group Company Ltd. The sale is expected to close in the third quarter of 2010 and is subject to customary closing conditions, including receipt of applicable regulatory approvals. Ford will get US$1.8 billion for Volvo Cars and related assets. 'Volvo is a great brand with an excellent product lineup. This agreement provides a solid foundation for Volvo to continue to build its business under Geely's ownership,' said Alan Mulally, Ford's president and CEO. 'At the same time, the sale of Volvo will allow us to further sharpen our focus on building the Ford brand around the world and continue to deliver on our One Ford plan serving our customers with the very best cars and trucks in the world,' he added.
'Zhejiang Geely would like to pay tribute to Ford's stewardship of the Volvo brand, and we look forward to continued cooperation as Volvo embarks on the next stage of its evolution with Geely,' said Li Shufu, Chairman of Zhejiang Geely Holding Group Company Ltd. 'The Volvo management team fully endorses Ford's sale of Volvo Cars to Geely. We believe this is the right outcome for the business, and will provide Volvo Cars with the necessary resources, including the capital investment, to strengthen the business and to continue to move it forward in the future,' said Stephen Odell, CEO of Volvo Cars.
Ford will continue to cooperate with Volvo Cars in several areas after the sale has been completed in order to ensure a smooth transition, but will not retain any ownership in the Volvo Cars business. Following completion of the sale, Ford will continue to supply Volvo Cars with powertrains, stampings and other vehicle components for a limited period of time. 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 a transition period to ensure a smooth separation process.
[Via: indiaautomotive]