Ford to complete sale of Volvo China’s Geely next week
By Andrew C., 26 Aug, 2010. 0 Comments
Volvo Logo
Ford Motor Co. intends to complete its sale of Volvo Cars to China's Zhejiang Geely Holding Co. next week, finalizing Ford's exit from European luxury brands. Volvo will be sold to Geely for $1.8 billion, less than one-third of what was paid by Ford in 1999. The sources added that Ford and Geely wish to close the sale next week, pending final regulatory approvals and financing. By unloading Volvo, Chief Executive Officer Alan Mulally's strategy of leaving European luxury lines to focus on Ford's namesake brand will be completed. After arriving from Boeing Co. in 2006, Mulally has sold Aston Martin, Land Rover and Jaguar, which Ford had purchased in 1989 as the first of a lineup of premium nameplates that weren't as profitable as expected. Rebecca Lindland, an analyst for IHS Automotive in Lexington, Mass., said that a marriage between a commoner and a blueblood will be difficult to sustain. She said that the end of the Volvo-Ford marriage is a shame since it had been very strong as their car buyers had similar characteristics.
Latest Auto Shows
