Ford announces Volvo sale

Chief Financial Officer for the Ford Motor Company, Lewis Booth, officially confirmed yesterday that the multinational company will offload Volvo to Chinese automotive manufacturer, Geely.

"A primary goal of the sale process, was to find a new owner, who would share Ford's values, about Volvo Cars and Volvo Cars' future," said Booth.

"We needed to find a new owner who would take Volvo Cars business forward, while also cherishing its unique Swedish brand values and who would also understand our obligations and responsibilities to our employees and to the communities in which we work.

"I am very pleased to say that I believe we have found such an owner -- in Geely."

Volvo, the last vestige of Ford's Premier Automotive Group remaining in the fold, had been earmarked for sale since late last year, after Ford slimmed down their holdings in the aftermath of the Global Financial Crisis.

Ford and Geely arrived at a US $1.8 billion figure for the sale of the prestige car company before Christmas, but there were some minor details unresolved before the announcement could be made, including a third-quarter 2010 settlement date. While the two parties have reached agreement, the sale remains subject to a legal verification process and approval from national and competition authorities.

In a press release issued by Ford today, Li Shufu, chairman of Zhejiang Geely Holding Group Company Limited acknowledged Ford's on-going importance to the Volvo brand and the need for cooperation between the buyer and the seller into the future.

"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," said Li.

Volvo products share platforms and engines with Ford products and, as with Ford's sale of Jaguar and Land Rover to Indian company Tata, part of the deal between Ford and Geely is understood to involve on-going product development support for vehicles such as the new S60 (pictured)

"The Volvo management team fully endorses Ford's sale of Volvo Cars to Geely," added Volvo CEO, Stephen Odell (also pictured) in the release.

"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.

"Geely has been very supportive of Volvo Cars' business plans and management team. We look forward to building a strong relationship between Volvo Cars and Geely, and to maintaining a strong relationship with Ford in those areas where we will continue to work together to ensure a smooth transition."

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