Following months of negations, the sale of Volvo from Ford to Zhejiang Geely Holding Group Company Limited, also known simply as Geely, is officially official.
Sources at Volvo Charlotte told us that Volvo fetched a price of $1.8 billion. Under the terms of the sale, Ford will continue to supply Volvo with powertrains, tooling, and other components, at least in the near-term. The agreement also allows Volvo to grant sub-licenses for specific systems to third parties, such as Geely.
“Volvo is an excellent brand with a strong product line, and it has returned to profits after a successful restructuring. We are confident Volvo has a solid future under Geely’s ownership,” said Alan Mulally, Ford’s president and CEO. “At the same time, the sale of Volvo will allow us to sharpen our focus on 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.”
Under its new ownership, Volvo will managed by Stefan Jacoby, formerly of Volkswagen, who will serve as the new President and Chief Executive. According to Volvo Dealer Newark, the company also plans to maintaining its headquarters and manufactures centers in Sweden and Belgium.
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