Ford has announced that they will sell Volvo to Geely for a sum of $1.8 billion – subject to negotiations on Volvo’s pension deficit, as well as their debt. However, the Detroit automaker did say that they did not expect to see all of that sum once deductions for said items were taken into account.
Ford have yet to say how much they will end up getting in the deal, but it will certainly be a huge boost for them. Ford has lost a huge amount of money with Volvo, they paid over $6.5bn in 1999 –showing how much of a loss-maker the Swedish carmaker has been to them.
The Telegraph reports that Unions have expressed concerns over how much commitment Geely would give to Volvo, although it has been suggested that the Chinese company has $2.7bn to invest into Volvo.
This deal could be the kind of injection that Volvo needs, as they will get a huge boost by entering into the profitable Chinese auto market.