Volvo, Geely and Ford Deal Dependant on Pension Deficit

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.

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Written by Peter Chubb

Peter has been writing on Product-Reviews since 2007 and in that time much has changed for him, like his hair having more grey than brown now. He loves gadgets and cars, and gets excited when big events come up, such as CES and the big auto shows.

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He started out working in a factory and dreamed of the day when he could become his own boss; That happened back in 2002 and he has never looked back since. Things have changed so much on the Internet in that time, but he has adapted well.

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