Autoblog

BREAKING: Ford officially sells Volvo to Geely for $1.8b

Damon Lavrinc — Mon, 02 Aug 2010 07:46:00 EST

2011 Volvo S60 - Click above for high-res image gallery

After months of protracted negotiations, Ford has officially sold Volvo to Zhejiang Geely Holding Group Company Limited - aka Geely - for $1.8 billion.

The Chinese automaker originally included a $200 million note and the balance in cash, and today, it paid the remaining $1.3 billion to wrap up the sale, although the final sale price won't be released until later this year and could put more cash in the pockets of FoMoCo.

Under the terms of the sale, Ford will continue to supply Volvo with everything from powertrains to stamping systems and other vehicle components for differing periods of time. Additionally, Ford and Geely have come to an agreement on intellectual property usage, with Volvo allowed to grant sub-licenses to specific systems to third parties, including Geely.

Stefan Jacoby - formerly of Volkswagen - will take the helm as the new President and Chief Executive of Volvo Cars, and under the new ownership, the automaker will continue to keep it headquarters and manufacturing centers in Sweden and Belgium.

Full details in the dueling press releases after the jump.

Gallery: 2011 Volvo S60

[Source: Ford, Geely]

Continue reading BREAKING: Ford officially sells Volvo to Geely for $1.8b

BREAKING: Ford officially sells Volvo to Geely for $1.8b originally appeared on Autoblog on Mon, 02 Aug 2010 07:46:00 EST. Please see our terms for use of feeds.

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Ford finalizes deal to sell Volvo to Geely for $1.8 billion

Sam Abuelsamid — Sun, 28 Mar 2010 09:55:00 EST

Filed under: Ford, Volvo, Geely

At press conference in Gothenburg, Sweden today, Ford executive vice president Lewis Booth and Geely chairman Li Shufu announced that the companies have reached a final deal to sell Volvo to the Chinese automaker. The final purchase price is $1.8 billion, which includes some of Volvo's intellectual property and its other physical assets.

Volvo will be 100-percent owned by Geely, and Ford will not retain any equity stake. Because of the component sharing between existing Volvo vehicles and Ford models, Ford has agreed to continue supplying powertrains, stampings and other systems to Volvo for an undisclosed transition period. Perhaps the most difficult aspect of this deal is the intellectual property situation. Volvo will be granted licenses to use some Ford-owned technology and will have the ability to sub-license some technology to third parties, including Geely.

Li committed to keeping the Volvo brand separate from Geely while expanding its global reach, particularly in China. Li also stated that Volvo would maintain a manufacturing footprint in Sweden.

The sale is expected to close in the third quarter of this year, pending regulatory approvals. Unlike the aborted sale of Hummer, the Chinese government will likely approve this deal since Geely is already in the car business. The official press release is included after the jump.

[Source: Ford]

Continue reading Ford finalizes deal to sell Volvo to Geely for $1.8 billion

Ford finalizes deal to sell Volvo to Geely for $1.8 billion originally appeared on Autoblog on Sun, 28 Mar 2010 09:55:00 EST. Please see our terms for use of feeds.

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Ford officially confirms China's Geely as preferred bidder for Volvo

Sam Abuelsamid — Wed, 28 Oct 2009 12:58:00 EST

Filed under: China, Ford, Volvo, Geely

Volvo S60 concept - click above for high-res image gallery

It's been rumored for months Chinese automaker Geely had the best shot at picking up the Volvo brand from Ford, and today, Dearborn has finally confirmed it. Geely was named as the preferred bidder this morning and the Blue Oval is proceeding with negotiations. However, this is not going to be an easy deal to close. Ford doesn't want to keep any stake in the Swedish company, although it does hope to continue some product cooperation.

In spite of the lack of shareholding, Ford doesn't want Volvo to wither on the vine and wants whoever buys it to have the resources to make it a going concern - unlike what happened when BMW dumped Rover. Perhaps the toughest nut to crack will be intellectual property concerns. Any time a sale like this happens, the seller is be concerned about leaving too much information lying around, and that concern is understandably amplified when dealing with an up-and-coming Chinese company. There is no word on when a deal might be closed, so in the meantime, busy yourself with the official release after the jump.

Gallery: Detroit 2009: Volvo S60 Concept

[Source: Ford]

Continue reading Ford officially confirms China's Geely as preferred bidder for Volvo

Ford officially confirms China's Geely as preferred bidder for Volvo originally appeared on Autoblog on Wed, 28 Oct 2009 12:58:00 EST. Please see our terms for use of feeds.

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REPORT: Geely's plans to buy Volvo from Ford unravelling over intellectual property concerns?

Chris Shunk — Fri, 23 Oct 2009 16:00:00 EST

Filed under: Ford, Volvo, Earnings/Financials, Geely

Ford has been trying to offload the Volvo brand since December of 2008, but after years of rumors and speculation those 10 months feel more like a decade. China's Geely has been speculated as the number-one bidder for the Blue Oval's Swedish luxury brand, but a report by Bloomberg asserts that the long-awaited accord could be shelved due to concerns over Ford's intellectual property.

Because Volvo is so tightly integrated into Ford's product development, any buyer of the safety-minded car maker would have inside knowledge of the Blue Oval's future product plans and access to its latest and greatest technology. The buyer would also have direct access to Ford's vehicle architectures, since so many are shared between itself and Volvo. If Geely does in fact purchase Volvo, those platforms, which pass both European and U.S. crash test standards with flying colors, it could give China's largest automaker a better chance of entering the coveted U.S. market. And helping Chinese automakers enter the States probably isn't at the top of the list of things Ford wants to do right now.

U.S. and European automakers have had their hands full in attempting to curb China's lax intellectual property rules. Some vehicles built by Chinese automakers and sold in the land of the Great Wall are nothing more than carbon copies of vehicles from American., Japanese and European automakers... save for a new logo. Ford is also dealing with the case of Xiang Dong Yu, an ex Ford engineer who stole 4,000 sensitive and confidential documents from the Dearborn, MI-based automaker. The sticky-fingered engineer reportedly pilfered the documents in an effort to get a job at Shanghai Automotive but he was instead hired by Bejing Automotive.

The other issue Ford could be facing is the bargain-basement price tag Volvo is rumored to be offered at due to years of recessing sales volume and mounting losses. Ford purchased Volvo in 1999 for over $6 billion, but sources familiar with the brand's sale estimate that the Swedish automaker could now fetch as little as $2 billion. While that sum is nothing to sneeze at, Ford could be better off waiting until the automotive market heats back up gain. The new XC60 crossover has helped curb Volvo's sales woes here in the U.S. to the point that the Swedish Automaker realized a 16% sales climb versus last September. Next year's intro redesigned S60 coupled with several mid-cycle face lifts could continue to help Volvo's short-term prospects.

[Source: Bloomberg | Photo: Sven Nackstrand/AFP/Getty Images]

REPORT: Geely's plans to buy Volvo from Ford unravelling over intellectual property concerns? originally appeared on Autoblog on Fri, 23 Oct 2009 16:00:00 EST. Please see our terms for use of feeds.

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Safety First: Daimler reportedly passes on buying Volvo

Noah Joseph — Sun, 04 Jan 2009 12:03:00 EST

Filed under: Daimler, Ford, Volvo, Earnings/Financials

Volvo and Mercedes-Benz have been known for decades as automotive safety pioneers, sharing between them the bulk of new innovations in the field. These days, however, automakers are as as concerned about their financial security as they are with occupant safety. With the latter in mind, reports indicate that Mercedes parent company Daimler has decided against buying Volvo from Ford.

Amidst slumping sales and a troubled future, reports surfaced a month ago that Ford was looking for a buyer for the last remnant of its ill-fated Premier Auto Group, after Land Rover, Jaguar and Aston Martin were all sold off to Asian investors. Ford bought the Swedish automaker from the Volvo group for $6.45 billion back in 1999, and is looking to offload it for $6 billion today. Unfortunately for FoMoCo, nobody seems to have the cash. The Volvo group has rejected the possibility of buying its car division back, the Swedish government isn't interested, BMW reportedly considered the prospect but ultimately rejected it, and now Daimler, which has had its fill of acquisition deals with Detroit, has passed as well. At this point, Chinese automakers like Shanghai (SAIC) and Geely, as well as Korean automaker Hyundai seem like the only tenable prospective buyers left.

[Source: Economic Times]

Safety First: Daimler reportedly passes on buying Volvo originally appeared on Autoblog on Sun, 04 Jan 2009 12:03:00 EST. Please see our terms for use of feeds.

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Ford in further talks with Shanghai Auto to sell Volvo

Frank Filipponio — Mon, 08 Dec 2008 09:59:00 EST

Filed under: China, Volvo, Earnings/Financials

The UK's Sunday Mail is reporting that Ford has returned to Shanghai Automotive Industry Corp. (SAIC) to make another pitch to sell Volvo. As we told you back in June, SAIC is one of the leading contenders to snap up Volvo. Although Ford had long maintained the Swedish automaker was not for sale, it recently admitted it was entertaining offers for the firm. Having paid $6.4 billion for Volvo back in 1999, it is believed that Ford is now seeking around $6 billion for the company. That's a lot of renminbi.

Like the rest of the industry, Volvo is struggling in today's market with third-quarter sales down 24 percent. It has cut thousands of jobs and has even sought assistance from the Swedish government. Besides SAIC, Hyundai Motor Co. is still believed to be in the hunt for Volvo, as well as the Swedish government itself, although that seems unlikely.

If SAIC does end up in Chinese hands, it won't be their first experience building Volvos. The Chinese-market-only, long-wheelbase S80L is already being built at the CFMA Chongqing plant in China, but that is a unique partnership for now and it is unclear how the sale of Volvo to SAIC would affect that arrangement.

[Source: The Sunday Mail]

Ford in further talks with Shanghai Auto to sell Volvo originally appeared on Autoblog on Mon, 08 Dec 2008 09:59:00 EST. Please see our terms for use of feeds.

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Swedish Sell-A-Thon! Ford reconsiders selling Volvo

John Neff — Mon, 01 Dec 2008 10:59:00 EST

Filed under: Ford, Volvo

Ford announced today that it's "re-evaluating strategic options for Volvo Car Corporation", which in plain English means that it may sell the Swedish brand that it's owned since 1998. The Dearborn-based automaker says this re-evaluation will take about three months, during which Ford and Volvo will work together as they always have. While the sale of Volvo will be no doubt be decided upon during this time, Ford has also said it will be working on propping Volvo up as a stand-alone business since the Premier Automotive Group, which once included Volvo, Jaguar, Aston Martin and Land Rover, has been dismantled. There's no mention of how much Ford thinks it can get for Volvo or whether any companies have actually expressed interest in the foreign brand known most for slavish devotion to safety. Though Volvo sales have been down sharply this year, the same can be said for virtually every brand in the industry. Potential suitors of Volvo may also be interested in the new S60 that will debut next month at the Detroit Auto Show and may improve the brand's fortunes.

[Source: Ford]

Continue reading Swedish Sell-A-Thon! Ford reconsiders selling Volvo

Swedish Sell-A-Thon! Ford reconsiders selling Volvo originally appeared on Autoblog on Mon, 01 Dec 2008 10:59:00 EST. Please see our terms for use of feeds.

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Ford discusses selling Volvo with Renault, again

Noah Joseph — Mon, 30 Jun 2008 19:17:00 EST

Filed under: Ford, Volvo, Renault

As Ford reportedly prepares to offload Volvo and dismantle the last remaining vestiges of its once proud Premier Automotive Group, reports indicate that discussions were, once again, held with Renault.

The French automaker was tipped as a potential buyer when Jaguar was on the table, expressing interest in acquiring a luxury brand (and evidently forgetting it had Infiniti up its sleeve). Along with Chinese automakers, Renault has reportedly been in on-again, off-again discussions with Ford over the sale of Volvo as well, though Ford insists that its Swedish subsidiary is not for sale.

[Source: Automotive News - subs. req'd]

Ford discusses selling Volvo with Renault, again originally appeared on Autoblog on Mon, 30 Jun 2008 19:17:00 EST. Please see our terms for use of feeds.

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Chinese automaker denies rumor about interest in Volvo

John Neff — Fri, 27 Jun 2008 19:31:00 EST

Filed under: China, Volvo

An eternally unanswerable question seems to be whether or not Ford is actively shopping around Volvo for a buyer. Just this week we reported that Chinese automaker SAIC and some Russian investors had expressed interest in purchasing the Swedish carmaker from Ford, but today we learn from a source within SAIC that the company is doing nothing of the sort. The unidentified source said that, as far as he/she knew, the two companies were not in contact about a possible purchase at all. Volvo's staying quiet and licking its wounds after announcing 2,000 layoffs this week, while Ford is singing the same old song with a catchy chorus that insists Volvo is not for sale. Well, the rumor that some Russians are interested in Volvo hasn't been refuted yet, so until someone named Boris says otherwise, let's considerable Volvo on the market despite Ford's protest.

[Source: Automotive News, sub. req'd]

Chinese automaker denies rumor about interest in Volvo originally appeared on Autoblog on Fri, 27 Jun 2008 19:31:00 EST. Please see our terms for use of feeds.

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REPORT: Ford secretly planning summer sale of Volvo

John Neff — Fri, 18 Jan 2008 17:29:00 EST

Filed under: Ford, Volvo

The Business in the UK is speculating that, despite comments to the contrary, Ford is planning to auction off Volvo as soon as its deal to unload Jaguar and Land Rover to Indian automaker Tata is done. The summer sales event that would see the last of Ford's Premiere Auto Group sold off is expected to fetch Ford around $6 billion, which is just a smidge less than the $6.45 billion the automaker paid for the Swedish brand back in 1999. Unfortunately, despite a much improved product line-up, Volvo hasn't made a cent of profit under Ford's stewardship.

We're a bit leary of this claim that Volvo is headed for the auction block so soon, as Ford has intertwined its own platforms with those of Volvo to such an extent that selling off the automaker would involve extremely complicated deals to ensure that products planned for the near future that happen to share components are not interrupted. So far, only this one media outlet is reporting the story, with no other news organizations having stepped forward to corroborate its claims. Thanks for the tip, David!

[Source: The Business]

REPORT: Ford secretly planning summer sale of Volvo originally appeared on Autoblog on Fri, 18 Jan 2008 17:29:00 EST. Please see our terms for use of feeds.

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Ford denies discussing sale of Volvo

Chris Tutor — Wed, 30 May 2007 07:38:00 EST

Filed under: BMW, Ford, Volvo

Earlier this month we brought you a rumor that BMW was in talks with Ford to buy Volvo. Then just this week the rumor popped up again, in a Swedish newspaper. Now Ford comes out to officially quash the story, saying, "Ford Motor Company is not in discussions with BMW or any other company regarding an interest in the Volvo Car Corporation."

That should take care of it, right? Well, not with everyone. Reuters quotes several industry analysts saying such a sell wouldn't surprise them. Ford could make a load of much-needed money by getting rid of Volvo, and one analyst said he would expect Ford to look at all serious offers.

A Merrill Lynch analyst told Reuters Ford might get as much as $8 billion for Volvo, if, of course, it were for sale.

We've already stated our thoughts on BMW buying Volvo, but with the sale of Chrysler to a private equity group, could Volvo be the next Cerberus target? A Chrysler/Volvo team could be the halo marque the automaker needs, and Chrysler could also benefit from Volvo's safety first image.

Such a matchup might also mean a Magnum-based Volvo wagon. Interesting.

Thanks for the tip, SobeSVT!

[Source: Reuters via Yahoo]

Ford denies discussing sale of Volvo originally appeared on Autoblog on Wed, 30 May 2007 07:38:00 EST. Please see our terms for use of feeds.

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