Official: Geely has completed the purchase Volvo from Ford
The group sold the Ford Sunday Swedish auto company Volvo largest private automotive manufacturer in China, Zhejiang Geely Holding, for 1.3 billion euros, writes AFP quoted by Mediafax.
The deal is worth 1.8 billion dollars (1.3 billion euros), said chief financial officer of Ford, Lewis Booth.
Zhejiang Geely Holding was chosen by Ford in October 2009 as the preferred bidder for the Swedish company. Selling Volvo would allow the American group to raise cash and focus on the main models, necessary for leaving the most severe crisis which passed the U.S. auto industry.
However, Geely acquisition will give Volvo access to European technology, which will give them an advantage over Chinese State-owned manufacturers such as Dongfeng Motor.
"Volvo is a very good brand with an excellent product line. This understanding provides a solid basis Volvo to continue business under the tutelage of Geely, said Alan Mulaly, President Ford. "At the same time, Volvo sale will allow us to focus on strengthening the Ford brand worldwide and we continue One Ford plan serving customers with the best cars and trucks.
Ford will continue to work with Volvo Cars in several areas after the sale, to ensure a smooth transition, but will not keep anything from Swedish company. After the sale, Ford will continue to provide for Volvo, for a certain period of time, engines and other components.
Also Ford is also committed to provide technical support, technical information, access to the components and other services to ease the process of separation (Mediafax)
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