Ford announced today that it has completed the sale of its Volvo car unit to China's Zhejiang Geely Holding Group for $1.8 billion. Also, Geely announced that Stefan Jacoby, CEO of Volkswagen Group of America, will be the new CEO of Volvo Cars.
Volvo sale follows the sale of Aston Martin back in 2007, and of Jaguar and Land Rover to India's Tata Motors Ltd. in 2008 and according to Ford CEO Alan Mulally this was part of the strategy of the American manufacturer of exiting European luxury brands to focus on the core Ford brand.
We don´t know what profits did Volvo brought to Ford as the American manufacturer paid $6.5 billion for the Swedish brand in 1999. Volvo is an excellent brand with a strong product line, and it has returned to profits after a successful restructuring.
We are confident Volvo has a solid future under Geely's ownership, said Mulally. Ford also announced that it will continue to cooperate with Volvo in several areas to ensure a smooth transition and will continue to supply Volvo with powertrains, stampings and other vehicle components. According to Mullaly Ford has not retained any ownership in the Volvo business.