Looks like the deal for Volvo is sorted
The sale of Volvo to China’s Geely by Ford has now been confirmed, with the deal to be signed in the New Year and transfer taking place in the 2nd quarter of 2010.
The negotiations with Ford’s preferred bidder Geely to sell its Swedish brand Volvo have been going on for months – at least. But it now seems as if most of the major obstacles have been sorted with a release of information today by both parties.
There is still some way to go, but it would appear that Geely has met Ford’s conditions for the sale and that a definite sale agreement will be signed in the early New Year with the final transfer of Volvo to Geely taking place in the 2nd quarter of 2010.
One issue had been whether Geely would have the resources going forward after the sale to fund Volvo going forward, but Ford’s press release states 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.”. Which is clear enough, however we don’t yet know whether that is with Ford’s help or with resources already in place.
The sale of Volvo is the last major divestment for Ford from its Premier Marques’ portfolio built up over the last decade, none of which have been a real success. But Jaguar Land Rover now look like they’re set to thrive under Tata’s ownership and, until the recent economic mess, Aston Martin were doing well.
Let’s hope Volvo thrives under Geely’s stewardship.
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