Ford Agrees to Sell Volvo to Chinese Company

wildon · 25th December 2009, 09:31

Quote:

Ford announced today that it has come to terms with Zhejiang Geely Holding Group Co. Ltd. to sell the Volvo brand. Details of the sale, namely how much it’s for, were not released. But Ford says all “substantive commercial terms” have been settled. They basically just need to finish the paperwork, which should be completed early in 2010.

Ford said it would not “retain a shareholding in the business” after the sale goes through, but it could still work alongside the new ownership to develop technology. Currently, many of Ford’s products ride on platforms developed by Volvo.

Current Volvo owners in the U.S. shouldn’t expect to see much change in their current dealership and service operations in the short term or even the next few years. It’s expected Geely will continue to operate Volvo in much the same way Jaguar and Land Rover are being run under new, Indian-based ownership.

Source: Ford Agrees to Sell Volvo to Chinese Company - KickingTires

COSY RAJA · 25th December 2009, 18:16

Thats he new world order. India and China the new economic powerhouses are truly going Global. What with Tatas buying out Corus steel and JLR and Sunil Barthi Mittal making his intentions very clear to be amongst top Global telecom players ( narrowly missed out the MTN deal). Sure India and China are the world players in traditional industries like Manufacturing and new age Industries like IT services.

Raja.

Mustang.101 · 29th March 2010, 13:23

It has been announced thatFord has entered into an agreement to sell Volvo and related assets to Zhejiang Geely Holding Group in a $1.8 billion deal (Rs 815 crore).

To be completed by Q3 2010

Geely will own Volvo outright, with Ford retaining no shares in the company

but, Ford will continue to supply Volvo with powertrains, stampings and other vehicle components for unspecified time.

As part of the agreement, Ford also has vowed to provide engg. support, I.T. , access to tooling for common components, and other selected services for an unspecified transition time

btw Geely is 10th largest car maker in China.

My Opinion : Expect volvo cars to drop a few NCAP stars, what do you guys think?

acidkill · 29th March 2010, 13:35

Well, i wish Geely all the best. But it seems like Ford is having its cake and eating it too if it retains the intellectual property of the engine and stampings. Those two being the USP of volvo cars means that there is no "real" and "tangible" capability that Geely has bought.

ajmat · 29th March 2010, 13:39

If Geely knows whats good for Volvo, it will be to let Volvo manage the design of the cars. The good thing about this deal is that Volvo can make big in roads into China as an official car for supremo's (only locally made Audi's are considered at the moment). This is a large segment in itself. However the cars need to be made to volvo standards whatever. Geely should observe the resurgence of JLR and observe

Gilead · 29th March 2010, 14:23

Quote:

Originally Posted by Mustang.101

It has been announced thatFord has entered into an agreement to sell Volvo and related assets to Zhejiang Geely Holding Group in a $1.8 billion deal (Rs 815 crore).

You missed a zero in the crores.

If Volvo continues to be in charge of design, I don't why safety will be compromised. But looks like the Swedes will have to leanrn Chinese now.

Mustang.101 · 29th March 2010, 14:28

Quote:

Originally Posted by Gilead

You missed a zero in the crores.

If Volvo continues to be in charge of design, I don't why safety will be compromised. But looks like the Swedes will have to leanrn Chinese now.

Ooops sorry... Calculation mistake

srishiva · 29th March 2010, 14:33

Has the safety ratings for JLR dropped? If Geely can provide a big market and give Volvo designers a free hand, it can flourish.

aniguchisan · 29th March 2010, 21:28

Quote:

Originally Posted by Mustang.101

It has been announced thatFord has entered into an agreement to sell Volvo and related assets to Zhejiang Geely Holding Group in a $1.8 billion deal (Rs 815 crore).

Isn't $1.8bn more like Rs 8,150 crore?

Edit: Gilead pointed it out already. Whoops.

arjunrudra · 30th March 2010, 06:20

Isnt this real Bad new for the current Volvo owners and also the prospective ones. I really dont see any good chinese car company.
Just when the s80 was growing on me.

vikramk · 30th March 2010, 07:48

State Transport departments of several state in the country have introduced Volvo buses for both intra and inter city commutes.
And now looks like the government has to deal with China for servicing and also new purchases, if any.
Will the common man trust the reliability of these vehicles any more ?

SirAlec · 30th March 2010, 23:53

Quote:

Originally Posted by vikramk

State Transport departments of several state in the country have introduced Volvo buses for both intra and inter city commutes.
And now looks like the government has to deal with China for servicing and also new purchases, if any.
Will the common man trust the reliability of these vehicles any more ?

Volvo Bus & Trucks (commercial biz) and Cars are totally different entity.

What you are talking about is related to Volvo AB, which is a major truck maker and evens owns legendary American Truck brands like MAck.

PS: Do you know what company Geeley is.??
Yeah the same one that made copies of RR Phantom.

Amartya · 1st April 2010, 12:01

Geely is different from Tata. Everyone pointing out that it's the same thing, whether a company from India buys a premium brand or a Chinese one; they are all wrong in my opinion.

Unless Geely is a departure from most Chinese companies -all unscrupulous - Volvo is on thin ice.

DSC.CUSTOMS · 3rd April 2010, 20:30

I dont know how good or bad it is but we definitely wouldn't like to see something like this happening to a Volvo

YouTube - Cheap car from China

Anthym · 5th April 2010, 21:30

A Volgo in the making

25th December 2009, 18:16	#2
COSY RAJA BHPian Join Date: Oct 2009 Location: Coimbatore Posts: 28 Thanked: 0 Times	Thats he new world order. India and China the new economic powerhouses are truly going Global. What with Tatas buying out Corus steel and JLR and Sunil Barthi Mittal making his intentions very clear to be amongst top Global telecom players ( narrowly missed out the MTN deal). Sure India and China are the world players in traditional industries like Manufacturing and new age Industries like IT services. Raja.
	() Thanks

29th March 2010, 13:23	#3
Mustang.101 BANNED Join Date: Feb 2010 Location: New Delhi Posts: 1,316 Thanked: 233 Times View My Garage	Ford Sells Volvo ! It has been announced thatFord has entered into an agreement to sell Volvo and related assets to Zhejiang Geely Holding Group in a $1.8 billion deal (Rs 815 crore). To be completed by Q3 2010 Geely will own Volvo outright, with Ford retaining no shares in the company but, Ford will continue to supply Volvo with powertrains, stampings and other vehicle components for unspecified time. As part of the agreement, Ford also has vowed to provide engg. support, I.T. , access to tooling for common components, and other selected services for an unspecified transition time btw Geely is 10th largest car maker in China. My Opinion : Expect volvo cars to drop a few NCAP stars, what do you guys think? Last edited by Mustang.101 : 29th March 2010 at 13:26.
	() Thanks

29th March 2010, 13:35	#4
acidkill BHPian Join Date: Jan 2010 Location: Chennai Posts: 420 Thanked: 137 Times	Well, i wish Geely all the best. But it seems like Ford is having its cake and eating it too if it retains the intellectual property of the engine and stampings. Those two being the USP of volvo cars means that there is no "real" and "tangible" capability that Geely has bought.
	() Thanks

29th March 2010, 13:39	#5
ajmat Team-BHP Support Join Date: Feb 2004 Location: Bangalore Posts: 14,864 Thanked: 27,975 Times View My Garage	If Geely knows whats good for Volvo, it will be to let Volvo manage the design of the cars. The good thing about this deal is that Volvo can make big in roads into China as an official car for supremo's (only locally made Audi's are considered at the moment). This is a large segment in itself. However the cars need to be made to volvo standards whatever. Geely should observe the resurgence of JLR and observe
	() Thanks

29th March 2010, 14:33	#8
srishiva Senior - BHPian Join Date: Nov 2006 Location: Bengaluru Posts: 4,375 Thanked: 2,256 Times	Has the safety ratings for JLR dropped? If Geely can provide a big market and give Volvo designers a free hand, it can flourish.
	() Thanks

30th March 2010, 06:20	#10
arjunrudra Senior - BHPian Join Date: Jul 2008 Location: Gurgaon/Chennai Posts: 1,577 Thanked: 197 Times View My Garage	Isnt this real Bad new for the current Volvo owners and also the prospective ones. I really dont see any good chinese car company. Just when the s80 was growing on me.
	() Thanks

30th March 2010, 07:48	#11
vikramk BHPian Join Date: Jan 2010 Location: Bangalore Posts: 123 Thanked: 117 Times	State Transport departments of several state in the country have introduced Volvo buses for both intra and inter city commutes. And now looks like the government has to deal with China for servicing and also new purchases, if any. Will the common man trust the reliability of these vehicles any more ?
	() Thanks

1st April 2010, 12:01	#13
Amartya Senior - BHPian Join Date: Mar 2008 Location: Evanston Posts: 1,748 Thanked: 736 Times	Geely is different from Tata. Everyone pointing out that it's the same thing, whether a company from India buys a premium brand or a Chinese one; they are all wrong in my opinion. Unless Geely is a departure from most Chinese companies -all unscrupulous - Volvo is on thin ice.
	() Thanks

5th April 2010, 21:30	#15
Anthym BHPian Join Date: Oct 2008 Location: London Posts: 194 Thanked: 37 Times	A Volgo in the making
	() Thanks