Ford Sale of Volvo Expected to be Done Next Week
Ford Motor Co. plans to complete the sale of Volvo Cars to Zhejiang Geely Holding Co. next week, marking the biggest acquisition of a global brand by a Chinese company, people familiar with the plans told The Detroit News.
Ford is selling Volvo to Geely for $1.8 billion, less than a third of what it paid for the Swedish carmaker in 1999, as part of the Dearborn automaker's strategy to focus on its blue-oval brand.
Ford and Geely have been aiming to close the deal next week.
Li Shufu, founder and chairman of Zhejiang Geely, will be the chairman of a new board for Volvo Car Corp. after the deal is completed, Geely said this month. A former Volvo chief executive, Hans-Olov Olsson, will be vice chairman.
But it has given no indication whether negotiations to hire Stefan Jacoby, most recently head of Volkswagen's U.S. operations, to be Volvo's next chief executive are nearing completion.
Volvo's current CEO Stephen Odell will leave the company to become chairman and CEO of Ford of Europe.
The Volvo sale concludes Ford CEO Alan Mulally's strategy to shed the European luxury marques purchased by his predecessors.
Since Mulally's arrival from Boeing Co. in 2006, Ford has sold Aston Martin, Land Rover and Jaguar, which it acquired in 1989 as the first of a stable of premium brands that failed to generate the profits the automaker expected.
Of Ford's European brands, Volvo provided the most benefits to Ford, and the acquisition was considered among the most successful in an industry littered with unhappy deals.
Geely declined to comment on the timing of the completion.
Ford will continue to supply Volvo with engines, transmissions and other components. It also agreed to offer engineering and technology support, and access to tooling for common components for an unspecified period.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →