FORD has sold its Swedish Volvo car unit to China's Geely for $US1.8 Billion

[lino]

Ford Motor signed a $1.8bn deal to sell its Volvo brand to Geely on Sunday in a move seen as emblematic of the shift in the global car industry’s centre of gravity from the US and western Europe to China.

The transaction, signed in Sweden, will see Zhejiang Geely Holding Group, the parent of the Chinese carmaker, acquire 100 per cent of Volvo and its assets. Geely said the deal would nearly double its sales to 600,000 in five years, largely by building market share in its home country.

The deal marks the largest acquisition of an overseas carmaker yet by a Chinese company, and is China’s biggest foray into ownership of a big luxury brand. Ford and Geely said they expected the deal to close in the third quarter of this year, pending regulatory approvals.

Geely vowed to maintain Volvo’s manufacturing presence in Europe, where it has two car plants in Sweden and one in Belgium, but said China would become “Volvo’s second home market”.

Li Shufu, Geely’s chairman, likened the Gothenburg-based producer of famously safe and solid estate cars and executive sedans to a “tiger” in a zoo that would be freed to pursue new opportunities. “We need to liberate this tiger,” he said.

The deal ends more than a year of uncertainty for Sweden’s car industry since Volvo and Saab were put up for sale by their US owners. General Motors sold Saab to Spyker cars of the Netherlands last month.

Ford said the sale of Volvo would net it “significantly” less cash than the $1.8bn sale price because of adjustments to be made for pension deficits, debt, cash and working capital at the deal’s expected closing date.

Geely, which is mindful of protecting Volvo’s premium image even as it shifts more of its operations to China, said it intended to run the Swedish carmaker as a separate company with its own management team based in Gothenburg and a new board of directors.

Ford paid $6.45bn for Volvo in 1999 when it was split from the truck-making group of the same name. It was profitable then, but has lost money ever since.

Geely did not say how it planned to finance the deal but, according to a person briefed on its business plan, it has lined up financing from Chinese state institutions and provinces where it plans to build at least three plants.

Source: http://www.ft.com/cms/s/0/e687....html

[s0m3th1ngAZ]

Weee...more of U.S. being owned by foreign competitors.

[Xdisaster240sX]

Didnt China buy Hummer also? GM is in the toilet

[seang]

Another company where Chinese workers can get paid low wages.

[ScrapMetal]

I can't believe I'm reading these comments. You guys do know that Jaguar is now owned by an Indian company named Tata Motors...Jaguars are not made in India.

And I shouldn't even have to say that Volvo wasn't American to begin with.

[szh]

Weee...more of U.S. being owned by foreign competitors.

Volvo was not an American company to begin with.

Z

[hannibal]

I think this is what Scorched was getting at...

...the shift in the global car industry’s centre of gravity from the US and western Europe to China.

[driverdriver]

One of the safest automobile makers sold to a country where manufacturers produce some of the unsafest things.

How's that for irony?

[Infinitiguy19]

One of the safest automobile makers sold to a country where manufacturers produce some of the unsafest things.

How's that for irony?

I am just glad that Nissan and Infiniti are keeping to themselves....Oh wait.

[Mr1der]

better than being owned by the government?

[Jesda]

I can't believe I'm reading these comments. You guys do know that Jaguar is now owned by an Indian company named Tata Motors...Jaguars are not made in India.

And I shouldn't even have to say that Volvo wasn't American to begin with.

There's been a connection between the British and Indian auto industries going back several decades.

Anyone remember the first MG TFs that rolled out after Nanjing bought them? Not good at all, though arguably not much worse than before.

[driverdriver]

I wonder if resale values will plummet?

[Mr1der]

did they when Ford bought them?

[AZ89two4Tsx]

I can't believe I'm reading these comments. You guys do know that Jaguar is now owned by an Indian company named Tata Motors...Jaguars are not made in India.

Who gives a flying f*** about Jaguars? Lol, their cars suck as much as Land Rovers. Damn British people.

[skydragoness]

One of the safest automobile makers sold to a country where manufacturers produce some of the unsafest things.

How's that for irony?

First thing I thought of. A lot of their cars have the worse crash-test ratings ever. Really low-speed impacts crushing people's legs on one of their "SUVS" I remember. They haven't mastered the crumple zone yet.

If Ford messed up Volvo, I can only imagine what will happen now. By the sounds of the article, Geely wants to give Volvo free reign. Sounds good.

[flohtingPoint]

First thing I thought of. A lot of their cars have the worse crash-test ratings ever. Really low-speed impacts crushing people's legs on one of their "SUVS" I remember. They haven't mastered the crumple zone yet.

If Ford messed up Volvo, I can only imagine what will happen now. By the sounds of the article, Geely wants to give Volvo free reign. Sounds good.

Volvo, now colored with lead based paint.

[skydragoness]

Volvo, now colored with lead based paint.

MY EYES. THE GOGGLES DO NOTHING.

[Jesda]

Who gives a flying f*** about Jaguars? Lol, their cars suck as much as Land Rovers. Damn British people.

Land Rovers have always suffered from annoying and expensive problems, but Jaguars, under Ford's direction, have become reliable, beautiful cars. Over the past few years they were top 5 on customer satisfaction surveys along with Cadillac, Buick, and Lexus.

The XJ is an all-aluminum magic carpet.

[MinisterofDOOM]

Weee...more of U.S. being owned by foreign competitors.

Um...what?

better than being owned by the government?

I have this shirt.

Who gives a flying f*** about Jaguars? Lol, their cars suck as much as Land Rovers. Damn British people.

Are you kidding? XJR? XFR? XKR? XJ220? Yeah, man those all suck so much. Who wants 461 ft-lb anyway?I DO!

[Dattebayo]

This is what will prove Joss Whedon right.

[MinisterofDOOM]

Whedon just ripped off Ridley Scott and Bladerunner.But I think they're both full of crap.

[Jesda]

I don't like 95% of Whedon's work. I'd dislike all of it if he didn't direct Glee.

[MinisterofDOOM]

Joss Whedon and Richard Kelly both annoy me with their "I'm a creative genius" attitude. I enjoyed Firefly, but it was the few good CAST members that made it great.Whedon's childish obsession with teenage drama is nauseating, and Kelly's "genius" is really nothing more than not making ANY sense whatsoever.

[Dattebayo]

I was speaking, of course, ONLY with respect to FireFly.