Ford, Geely agree to terms on Volvo sale; aim to get deal done in early 2010
MUNICH -- Ford Motor Co. expects to sign a deal to sell its Volvo car unit to China's Zhejiang Geely Holding Group by the first quarter of 2010 and close the deal in the second quarter, the U.S. automaker announced today.
Ford said that all of the deal's key commercial terms have been settled. Ford added that work still needs to be done before the deal is completed, such as Geely securing its financing and getting approvals from the Chinese government.
In its statement, Ford said that 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 will continue to cooperate with Volvo in several areas after the sale, the company does not intend to retain a shareholding in the business once the deal is finalized.
Source: Ford, Geely agree to terms on Volvo sale; aim to get deal done in early 2010
Ford said that all of the deal's key commercial terms have been settled. Ford added that work still needs to be done before the deal is completed, such as Geely securing its financing and getting approvals from the Chinese government.
In its statement, Ford said that 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 will continue to cooperate with Volvo in several areas after the sale, the company does not intend to retain a shareholding in the business once the deal is finalized.
Source: Ford, Geely agree to terms on Volvo sale; aim to get deal done in early 2010
