Dearborn, Michigan – Ford has confirmed it will sell Volvo Car Corporation to China’s Zhejiang Geely for US$1.8 billion.
The sale is expected to close in the third quarter of 2010.
“Volvo is a great brand with an excellent product lineup,” said Alan Mulally, Ford president and CEO. “This agreement provides a solid foundation for Volvo to continue to build its business under Geely’s ownership. 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.”
Ford will continue to cooperate with Volvo in several areas after completion of the sale to ensure a smooth transition, but will not retain any ownership in the Swedish company. Following completion of the sale, Ford will continue to supply Volvo Cars with powertrains, stampings and other vehicle components for differing periods. As part of the sale, Ford has also committed to providing engineering support, information technology, access to tooling for common components, and other selected services for a transition period.