Ford completes the sale of Volvo to Geely
2 August 2010

Ford has completed the sale of Volvo to Chinese firm Geely.

The deal, first agreed in March, is worth $1.8 billion (£1.14bn) and the amount is expected to be fully paid by the end of the year.

Volvo CEO Stephen Odell has now moved to become chairman of Ford of Europe; Stefan Jacoby, Volkswagen Group of America CEO, has become CEO of Volvo. Geely chairman Li Shufu has been named as chairman of Volvo.

Ford will continue to supply Volvo with powertains, stampings and vehicle components, while also agreeing to offer IT and engineering support, as well as access to tooling for certain components.

Odell said Volvo is “well positioned for the future”. Ford’s chief financial officer Lewis Booth added that the firm has “made tremendous progress in restructuring its business plans and delivering results during the sale process”.

Alan Mulally, Ford’s president and CEO, said he was confident Volvo would thrive under Geely ownership.

“Volvo is an excellent brand with a strong product line, and it has returned to profits after a successful restructuring,” he said.

“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.”

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Comments
16

2 August 2010

“Volvo is an excellent brand with a strong product line, and it has returned to profits after a successful restructuring,” he said. Why selling then?

2 August 2010

[quote RadeB]“Volvo is an excellent brand with a strong product line, and it has returned to profits after a successful restructuring,” he said. Why selling then?[/quote]

Cause they're desperate for a lot of bunce very quickly.

2 August 2010

[quote RicardoJ]Cause they're desperate for a lot of bunce very quickly.[/quote] ...excellent brand,strong product line,returned to profits,restructured...and I'll sell that!!! Ford is not some small manufacture company that can't find big cash quickly if they are in need.They escape bankruptcy in this crisis and manage to make profit. Could it be something else, like some compensation for entering to the vast Chinese market! I don't know, but something is illogical to me.Or they simply lye!

2 August 2010

I hope this 'One Ford' plan they're pursuing works out. It just seems to be in complete contrast to other big car companies - like Volkswagen, but I have a feeling it's Volkswagen, not Ford, who are on the right road.

Is one 'world' car going to be special or unique enough to penetrate every market? In countries where class and desirability take precedence over value for money is the Ford badge going to be enough? They could have done so much with Volvo, but they don't seem to want to...

2 August 2010

[quote Autocar]Alan Mulally, Ford’s president and CEO, said he was confident Volvo would thrive under Geely ownership.[/quote]

Why not under Ford ownership? Why can't Ford management make money out of every other brand it's ever bought? And the answer to that question will be the answer to Ford's future.

2 August 2010

[quote Symanski]Why can't Ford management make money out of every other brand it's ever bought? [/quote]

They allready did make money on it. Fords reason for bying Volvo was access to Volvo technology. Now, when they have gotten that, they don't need Volvo anymore.

2 August 2010

I think Volvo lost the plot somewhat under Fords management, the S40 based C30 and C70 are an insult to peoples intelligence. Volvo's design revolution in the late '90's was great after so many dull boxy cars. The original S80, C70 coupe, S60/ V70 and XC90 were terrific bits of industrial design. They were a great step in the right direction that they failed to capitalise on and develop.

The XC60 looks like everything else (Ford Kuga, Nissan Qashqai), with a fussy front end, the new S60 looks like a Renault Laguna, (awkward wavy line down the side and very high horizontal rear lights that drop away at the sides)

And what idiot came up with the advertising campaign?! The "naughty" Volvos are coming?! Was that the best way of trying to convey sportiness or driveability?! Who is that meant to appeal to, the same people that enjoy the Halifax adverts?

I think Volvo will (eventually) flourish under Geelys ownership.

2 August 2010

[quote SF695]They allready did make money on it. Fords reason for bying Volvo was access to Volvo technology. Now, when they have gotten that, they don't need Volvo anymore.[/quote] Ford paid $6.45bn in 1999 for Volvo, and now Geely bought it for 1.3 billion, less than Autocar quotes. What a deal for Ford! But I'm sure bonuses for CEO,s are OK.

2 August 2010

[quote RadeB] Ford paid $6.45bn in 1999 for Volvo, and now Geely bought it for 1.3 billion, less than Autocar quotes. What a deal for Ford! But I'm sure bonuses for CEO,s are OK.[/quote]

True, on paper it may seem as if Ford lost money. But that is not the whole story. You see a lot of Volvo techology in Ford's lineup today although it's markeded as Ford techology. My point is, that the 6.45bn spent has earned itself back as developement savings. And has been a contributing factor in saving Ford from going bankrupt along with GM and Chrysler.

3 August 2010

[quote SF695]My point is, that the 6.45bn spent has earned itself back as developement savings.[/quote]

And Geely bought that development for only 1.3bn....

In the UK we openned the door to foreign car companies by going on strike every working day. Now we're laying out a red carpet to the Chinese by giving them everything that we have learnt about making cars.

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