Ford and Geely announce that a deal for Volvo has been reached

By Auto News Log • December 24th, 2009

It seems Santa Claus has made one Swedish carmaker happy this holiday season, as Ford and Geely held a joint press conference and announced that a deal for Volvo has been reached, with the Chinese corporation, the largest privately owned carmaker in the Asian country, buying the company for an undisclosed amount from Ford.

While the final paperwork is set to be signed in the first quarter of 2010, the two companies have revealed that there are no more hurdles to jump through, and assured everyone that the deal will take place as soon as legally possible, preventing anyone from thinking of what happened to the negotiations between GM and Koenigsegg for another Swedish brand, Saab.

Geely might pay around $2 billion for Volvo, but no official word has been given. The sale, according to a Ford spokesman, “would ensure Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise.”

This is definitely great news for Volvo, which will continue its research in safety systems, but also for Geely which will access technology from both Volvo and Ford. What do you believe? Is it for the best? Share your thoughts below.

Source: NYTimes


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