Currently reading: Ford sells Volvo to Geely
Ford completes the sale of Volvo to Geely
Autocar
News
1 min read
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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SF695 4 August 2010

Re: Ford sells Volvo to Geely

RadeB wrote:
What they learned from Volvo for $ 5.15 which they didn't already knew?
If you look at some of Fords models, you see that they are build on Volvo platforms and some use Volvo engines. The fact also remains that Volvo used to be known for quality and safety. Something i wouldn't say about Ford. With that in mind i think that Ford definately had something to learn from Volvo and had benifit from that. However it speaks to Fords credit, that they realised that and didn't have the same arrogant attitude, that GM had towards Saab.

Symanski 3 August 2010

Re: Ford sells Volvo to Geely

RadeB wrote:
But BRAVO for Chinese, that how you should do it!!!

Don't forget the Chinese bought all the IP (technology and design) off MG's Phoenix Four while the four of them were swigging back wine - toasting everything that needed toasting! I think the Chinese were even smart enough that they weren't picking up the bill for the dinner!

Everything that MG was was given away to the Chinese. Now they've paid a very small price for a much better company.

Don't be surprised if the Western motor companies have another crisis soon because of all the Chinese imports.

(Just to add - I have nothing against Chinese people at all. Muslims who try and blow us all up are a different matter!)

RadeB 3 August 2010

Re: Ford sells Volvo to Geely

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. From the Autocar article one can conclude that Geele will have approach to Volvo AND Ford technology for $ 1.3 bn.

SF695 wrote:
they still made money in the sence that they got access to techology that they otherwise would have to develope by themself.
What they learned from Volvo for $ 5.15 which they didn't already knew? My point is: Ford is not light years behind Volvo,Ford have thousands of engineers,they didn't bought Star Track technology from Volvo! But BRAVO for Chinese, that how you should do it!!!

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