Geely completes takeover of Volvo

Ford had taken over the Swedish carmaker for US$6.5 billion back in 1999, but has now sold them to Geely for around US$1.8 billion. Ford said that the transaction will be made in the form of a note in the amount of US$200 million and the remainder in cash.

Although Geely now has full control of Volvo now, Ford will continue to supply the company with powertrains, stampings and other vehicle components for an undefined period, due to the fact that Volvo cars share core components and technologies with Ford’s own vehicles. Ford also has committed to provide engineering support, information technology, access to tooling for common components, and other selected services for a transition period to ensure a smooth separation process.

"Volvo is a great brand with an excellent product lineup. This agreement provides a solid foundation for Volvo to continue to build its business under Geely's ownership," said Alan Mulally, Ford's president and CEO. "At the same time, the sale of Volvo will allow us to further sharpen our focus on building 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."

Li Shufu, chairman of Zhejiang Geely Holding Group Company Limited said: "Zhejiang Geely would like to pay tribute to Ford's stewardship of the Volvo brand, and we look forward to continued cooperation as Volvo embarks on the next stage of its evolution with Geely."

Stephen Odell, CEO of Volvo Cars, added, "The Volvo management team fully endorses Ford's sale of Volvo Cars to Geely. We believe this is the right outcome for the business, and will provide Volvo Cars with the necessary resources, including the capital investment, to strengthen the business and to continue to move it forward in the future."