A short while ago Ford announced that it would sell the Volvo Cars brand to a Chinese company by the name of Geely Holding Group. Many are sad to see the car company go to a Chinese owner, but for the Chinese it means they will finally be the owners of a large worldwide car company. Ford and Geely agreed on a price of $1.8 billion for Volvo Cars, a price which is just over $4.5 billion less than what Ford Motor Company bought the brand for in 1999.
The only hurdles holding back the sale of Volvo cars was the approval of the Chinese government and the European Union. The European Union approved the deal back in early July, but the Chinese government has only recently given the deal its official go ahead. With the ok from the European Union and the Chinese government, Ford expects the deal to be finalized sometime in the third quarter of this year.
Ford’s decision to sell the brand is part of its new restructuring policy which has led to the company selling off several brands in the past several years. With all of these brands unloaded, Ford will now be able to concentrate on growing its Ford and Lincoln brands into stronger competitors in a fierce automotive market.
The acquisition of Volvo Cars by Geely means that for the first time a Chinese company has control over a major car brand. Geely is still a small company and it remains to be seen whether they have enough experience to properly manage a large automotive manufacturing company like Volvo Cars. Hopefully they will keep the company heading in the right direction and help the brand continue to expand its growing lineup.