|
This is the end: Ford will definitively sell Volvo to Geely Auto in China. Watch parts OEM quality decline to nothing as they shift production to China to save money:
[WSJ] Zhejiang Geely Holding Group signed a binding deal Sunday to buy Sweden's Volvo Cars from Ford Motor Co. for $1.8 billion, in a landmark deal for China's burgeoning car industry that also poses serious challenges for Geely. Volvo spokesman Per-Ake Froberg confirmed that the agreement was signed between the two auto makers in Gothenburg. Under the deal, Geely will pay a $200 million note and $1.6 million in cash for Ford's unprofitable Volvo unit. Ford expects the deal to complete in the third quarter, once regulatory matters have been settled.
The U.S. car maker will continue to cooperate with Volvo Cars in several areas after the sale has been completed in order to ensure a smooth transition, but won't retain any ownership in the Volvo Cars business. Ford will continue to supply Volvo Cars with, for differing periods, powertrains, stampings and other vehicle components, and Volvo will also continue to supply Ford with stampings and components for a time.
Geely Chairman Li Shufu said Volvo will retain its Swedish identity and strategic independence. Volvo's management team will continue to be based in Gothenburg. But the Chinese car maker wants Volvo to boost its output, and will use Geely's experience and distribution network in China to help it achieve that aim.
--
See the 700/900 FAQ at the drop-down menu above right.
|
