Gelly and Ford have concluded today the transaction that Volvo will pass under Chinese leadership. The deal was sealed for $1.8 billion dollars.
To get an idea, almost four years ago, Google was snapping up YouTube for $1.65 billion, brushing aside copyright concerns to seize a starring role in the online video revolution.
Geely and Ford officials have now completed the transaction by which the Swedish manufacturer Volvo goes under the patronage of the Chinese.
Ford dropped Volvo for the amount of 1.8 billion dollars, less than one third of the amount paid in 1999. The money will be transferred to accounts by the end of 2010.
Following the transaction, Stephen Odell, Volvo’s chief executive will take the lead of Ford Europe Division, and Li Shufu, Geely chairman, will become head of Swedish manufacturer.
Although Volvo has left the Ford’s protecting wing, the American manufacturer is willing to continue providing powertrains, vehicle components and the IT support required.
“Volvo is an excellent brand with a strong product line, and it has returned to profits after a successful restructuring. We are confident Volvo has a solid future under Geely’s ownership,” said Alan Mulally, Ford’s president and CEO.
“At the same time, the sale of Volvo will allow us to sharpen our focus on the Ford brand around the world and continue to deliver on our One Ford plan serving our customers with the very best cars and trucks in the world,” he added.
Li Shufu, Geely chairman, said “The signing and completion of this acquisition reflects the commitment of Ford and Volvo executives to the future of this company, along with the vital input of labour representatives and government officials in Sweden, Belgium and China as well as other relevant countries”.