Ford will sell Volvo to Chinese company Geely next week

Ford plans to complete the sale of Volvo to Chinese company Geely next week, according to financial website Bloomberg.

China’s Ministry of Commerce, the government regulator of major acquisitions, has cleared the sale which was first agreed in March this year.

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Geely shares have soared 11 per cent in response. Volvo is to be sold for $1.8 billion (£1,151m), less than a third of what Ford paid for the company in 1999.

Once the sale is complete, Ford chief executive Alan Mulally will have sold all the company’s European brands, including Jaguar, Land Rover and Aston Martin, since arriving at the company in 2006. Mulally is committed to focusing only on Ford's core brands in Europe.

Volvo had pre-tax profit of $53 million (£33.9m) in the second quarter, compared with a $237 million (£151m) loss a year earlier, Ford said last week.

Geely’s London spokesman declined to comment on the timing of the deal.

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Comments
8

29 July 2010

RIP Ford PAG.

And here endeth the lesson for Corporate America. All those dumb deals, making no sense for anyone but the banks which make money as conglomerates are assembled and even more of it when they are dismantled.

29 July 2010

One feels sorry for the workforce when this happens, but always enjoyable is the experience of reading all the apparently expert analysis on the way in explaining why the deal makes such such good sense - all those synergies, economies of scale, win-win scenarios and so forth - and then the same talking heads a few miles down the road explaining why the deal was always going to come apart and why this new arrangement makes so much more sense....

29 July 2010

Oh, misread the headline. So it's not like the DFS sale next week then? Was hoping to pick up an XC90 at 50% off...

rlg

30 July 2010

Woohoo! long wheelbase S80's all round then

30 July 2010

Is that what they're going to call the LWB version, then? The Woohoo?

30 July 2010

[quote WFC Holden]Is that what they're going to call the LWB version, then? The Woohoo?[/quote]

Well, since Volvo is about to become Chinese, yes. Except they will spell it Wu Hu.

30 July 2010

[quote disco.stu]Oh, misread the headline. So it's not like the DFS sale next week then? Was hoping to pick up an XC90 at 50% off...[/quote]I also misread the headline and 50% off an XC90 would be very nice.

30 July 2010

[quote disco.stu]they will spell it Wu Hu.[/quote]

At the risk of appearing unsophisticated, DS, is that actually true? Amazing how much can be lost in translation. Quite comical, really.

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