My wife would like this V30 to be her next car – with the turbo-diesel
Ford has agreed the terms of the sale of its Swedish business, Volvo Cars, to China’s Geely.
Ford said “some work still remains to be completed” but the deal will be finalised early next year ahead of completion soon after Easter…
Geely was named preferred bidder in November. If completed, it will be the largest purchase by a Chinese car firm.
The question for Volvo is whether its new Chinese owner will do more for the marque than Ford did.
On one level, the decade-long US-Swedish partnership can be seen as a successful. They benefited from each other’s technology and expertise. But although many new models have been introduced in recent years, Volvo sales have not increased much.
No details were given of how much the deal is worth, but it is widely rumoured that Geely will pay Ford $2 billion, less than a third of the $6.45 billion Ford paid for Volvo in 1999…
“In theory, the Chinese market could be an opportunity for Volvo,” Nomura’s auto specialist Michael Tyndall said. “It’s a well-known brand, has a good heritage and a range of products that should appeal to the Chinese consumer.”
Equally, the deal should help Geely get into the Western market.
RTFA – especially if you’re not a motorhead. I wouldn’t even say there’s a devil in the details over this deal.
A recession is the best time in the world for someone with bucks to make a deal like this – and the tax break on a loss is advantageous to Ford, as well. They’ve already derived every hidden benefit of platform sharing with Volvo and learned a lot about design in the process.
Disclosure: I own a wee bit of Ford stock. My wife owns an ancient Volvo. 🙂