Ford today (2 August) confirmed the sale of its Volvo division to Zhejiang Geely Holding Group for US$1.8bn.
The US automaker said it would continue to cooperate with Volvo in several areas during a transition period, particularly with powertrains, stampings and vehicle components, although it is not clear for what time this might be.
“We are confident Volvo has a solid future under Geely’s ownership,” said Ford president and CEO Alan Mulally.
“At the same time, the sale of Volvo will allow us to sharpen our focus on the Ford brand around the world and continue to deliver on our One Ford plan.”
Ford also has committed to provide engineering support, information technology, access to tooling for common components, and other selected services for a transition period.
A Volvo spokesman in Sweden also confirmed today’s sale. “The sale of Volvo to Geely from Ford has happened,” he said. “The deal is completed.”
“What we are waiting for is that Geely will come out with its communication [about the new] CEO and board.”
As previously announced, Stephen Odell, Volvo Car Corporation CEO, is returning to Ford as group vice president and chairman and CEO of Ford Europe. Stuart Rowley, CFO of Volvo Cars, is returning to Ford as CFO, Ford Europe.
“We believe this agreement will provide Volvo with the necessary resources, including the capital investment, to strengthen the business and to continue to move it forward in the future,” said Ford CFO Lewis Booth.
“Ford appreciates the support of the Volvo management team, Volvo’s labour unions and the government officials in Sweden and China during this transaction,” Booth added.