Volvo almost sold to Geely.
A fate better than death. (Just ask Saab)
So it looks like the beginning of a new life for Volvo, under Chinese ownership.
I still wonder why Ford was so desperate to sell the Swedish brand.
It doesn’t seem like they were doing so bad, and Ford itself is doing OK…
Here is the official word:
-” Ford Motor Company [NYSE: F] confirmed today that all substantive commercial terms relating to the potential sale of Volvo Car Corporation have been settled between Ford and Zhejiang Geely Holding Group Company Limited.
While some work still remains to be completed before signing – including final documentation, financing and government approvals – Ford and Geely anticipate that a definitive sale agreement will be signed in the first quarter of 2010, with closing of the sale likely to occur in the second quarter 2010, subject to appropriate regulatory approvals.
The prospective sale would ensure Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise, while enabling Ford to continue to focus on and implement its core ONE Ford strategy.
While Ford would continue to cooperate with Volvo Cars in several areas after a possible sale, the company does not intend to retain a shareholding in the business post-sale.
More details will be made available once the expected definitive sale agreement is signed in the first quarter of 2010.”
Conversation 12 comments
This will be a travesty if allowed to happen.
We in the West must not and will not allow China to acquire Volvo.
I suggest we use the great might of the combined economic and military forces of the West to teach those scum of the earth a lesson once and for all.
We will at the very least need to keep their kind and their industries planted in the third world where they deservedly belong. The Holy Book demands it.
Any other week I'd be thinking this was terrible news but of course we have a bit more perspective now, don't we.
It's better for Ford to sell Volvo. In Volvo's best volume year, 2007, they sold 500,000 cars and lost over $160 Million, and they followed that up by losing nearly $1 Billion in 2008.
Stupid move. Ford vehicles now have some of the tech features found in Volvo. By selling it to the Chinese, Ford might have to 'buy it' back from them.
Chairman Mao is rolling and laughing in his Mao-selium. Who would have though the mighty US, once a super power, now is giving away pieces of its country.
Boys and girls, let's get on with the program. The Chinese have the money. I am surprised SAAB is not sold to the Chinese as well.
Sell them there furrin car companies to the furriners dang it.
Why? Volvo has been making some great looking cars. Ford should just sell of Lincoln and kill off Mercury. Lincoln is making some funky looking cars. What's the deal with they're new grilles? Trying to be a pontiac? And Mercury just rebadges they're cars as Mercurys. Ford is making some nice vehicles, financially they are doing well. All these news updates just begs for an answer to "What is the American auto industry doing!?"
Dumb move. Volvo is the only real luxury brand that Ford has.
@ThePatriot, I laughed.
I guess the big question is, has ford given up selling a luxury brand in europe? Do they really think anyone will ever buy a european lincoln? The recession will end and ford will be out a usually profitable international upscale automobile.
Volvo sold ytd less than 55K vehicles. Not selling well…
Even the new XC60 sold less than 8K this year trailing the competition.
That ought to put one mega dent in their spotless reputation for SAFETY!