Deal confirmed: Ford Volvo sold to Chinese Major “Geely”

Chinese Geely Acquires Ford Volvo Brand: Logo Images

The long awaited Ford-Geely deal is signed now and Chinese auto major Zhejiang Geely Holding Group is the official owner of the Swedish car brand Volvo. The previous owner, American car giant, Ford motor company has inked the deal for $1.8 bn.

The agreement was signed by Ford’s Booth and Geely’s chairman, Li Shufu, and witnessed by Swedish Minister for Enterprise and Energy Maud Olofsson as well as Li Yizhong, the Chinese minister of industry and information technology. Details of the deal will be provided at a news conference later on Sunday, Volvo’s spokesman Per-Ake Froberg said.

A mere $1.8 bn for the brand which sells for its safety!! Really cheap!! A decade ago Ford bought Volvo group for $6.45 bn. Back then, the American giant was congregating “Premium Automotive group”, well PAG is no more. Ford has already sold JLR to TATA group which for the first time since recession has shown signs of profit. And now was the turn for Volvo.

Volvo has been known for its safety and safety has been its unique selling point in market. Ford has benefited a lot with Volvo on its side. Ford has acquired the safety expertise from Volvo which otherwise it would not have able to obtain. Volvo had almost convinced the customers as an alternative next to stylish BMW or Mercedes.

Volvo will be 100-percent owned by Geely, and Ford will not retain any equity stake. Ford has agreed to continue supplying powertrains, stampings and other systems to Volvo for an undisclosed transition period.Volvo will be endowed licenses to use some Ford-owned technology.

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