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Ford Sells Volvo to China

Deal with Geely estimated at $2B

By the Associated Press

Posted Mar 28, 2010 8:00 AM CDT

(AP) – China's Zhejiang Geely Holding Group has signed a binding deal to buy Ford Motor Co.'s Volvo Cars unit, a Volvo spokesman Per-Ake Froberg confirmed today. He could not disclose the value of the deal, saying details on the price tag and the financing would be disclosed at a news conference later today. Analysts have estimated the deal at about $2 billion.

Ford has been trying to sell Volvo since late 2008 to focus its resources on managing its core Ford, Lincoln and Mercury brands. Geely, an independent automaker that has struggled to upgrade its image in overseas markets, has long coveted a stronger foothold in Europe. Volvo employs nearly 20,000 workers.

Unsold 2010 Volvo S80 sedans sit at a Volvo dealership in Denver.
Unsold 2010 Volvo S80 sedans sit at a Volvo dealership in Denver.   (AP Photo/David Zalubowski)
In this July 21, 2009 file photo, the Volvo logo on the front grille is shown in Miami.
In this July 21, 2009 file photo, the Volvo logo on the front grille is shown in Miami.   (AP Photo/Alan Diaz, file)
The flags of China, Sweden and the United States wave outside the Volvo Hall at the Volvo plant and headquarter in Torslanda, Gothenburg, Sweden, Sunday, March 28, 2010.
The flags of China, Sweden and the United States wave outside the Volvo Hall at the Volvo plant and headquarter in Torslanda, Gothenburg, Sweden, Sunday, March 28, 2010.   (AP Photo / Bjorn Larsson Rosvall / SCANPIX)
In this April 22, 2009 file photo, a worker stands near a model of Chinese automaker Geely's Geely Gleagle GX 313 at the Shanghai International Auto Show.
In this April 22, 2009 file photo, a worker stands near a model of Chinese automaker Geely's Geely Gleagle GX 313 at the Shanghai International Auto Show.   (AP Photo/Eugene Hoshiko, File)
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COMMENTS
Showing 3 of 31 comments
shusss
Mar 28, 2010 9:28 PM CDT
Hey Volvo owners...the sinking sound in your garage is the sharp decline of your re-sale value!
Molotov
Mar 28, 2010 4:32 PM CDT
Ever since Ford started sponsoring gay rights initiatives, they've been boycotted by every family group, until their stock was so weak they had to reverse their liberal policies. But by then, it was too late...they never recovered.
JoeQ
Mar 28, 2010 3:45 PM CDT
Hopefully, they sold it before they poisoned it with our dysfunctional American automotive management culture.

Copyright 2013 Newser, LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

Money • US

 
Ford • Volvo • Geely Automobile Holdings

 
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