agent Entrepreneur logo
MenuMENU
SearchSEARCH

Ford Sells Volvo to Geely in China’s Biggest Overseas Auto Deal

March 30, 2010
2 min to read


Ford Motor Co. agreed to sell Volvo Cars to Zhejiang Geely Holding Co. for $1.8 billion in the biggest overseas acquisition by a Chinese automaker, capping sales talks that began more than 18 months ago, Bloomberg reported. The price includes a $200 million note and the remainder to be paid in cash, Ford Chief Financial Officer Lewis Booth said yesterday in Gothenburg, Sweden. The companies expect to finish the deal in the third quarter after getting regulators’ approval, Geely Chairman Li Shufu said. Divesting Volvo completes Chief Executive Officer Alan Mulally’s strategy of exiting European luxury lines to focus on Ford’s namesake brand after the 2007 sale of Aston Martin, and of Jaguar and Land Rover to Tata Motors Ltd. for $2.4 billion the following year. Booming sales made China the world’s largest car market in 2009, generating profit that’s allowing automakers to reach out to Western markets and technologies. Ford fell 19 cents, or 1.4 percent, to $13.67 at 9:35 a.m. in New York Stock Exchange composite trading, after the automaker said today that a United Auto Workers trust would sell 362.4 million warrants. Each represents the right to purchase one share of Ford common stock at an exercise price of $9.20. Geely Automobile Holdings Ltd., the automaker’s listed unit, gained 1.5 percent to HK$4.16 in Hong Kong trading. Yesterday’s agreement includes terms regarding intellectual property rights and supply as well as research and development, Geely said. The Chinese company will help Volvo, whose headquarters will stay in Gothenburg, tap China’s growing market, Li said at a joint press conference with Ford. Volvo plans to produce 390,000 cars this year, compared with 330,000 in 2009, CEO Stephen Odell said. Geely will restore profitability to Volvo, according to Ford’s Booth. Ford will continue to supply Volvo powertrains, stampings and some vehicle components. It also agreed to provide engineering and technology support, and access to tooling for common components for an unspecified period. The Swedish carmaker’s S40 model is built on the mechanical foundation of the Ford Focus now sold in Europe. Volvo supplies diesel engines for Ford’s European lineup.

More Industry

Gas pumps.
Industryby Lauren LawrenceJune 15, 2026

Consumer Outlook on the Rise

Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.

Read More →
Group photo of men outside storefront.
Industryby Hannah MitchellMay 28, 2026

Pennsylvania Dealership Under New Retailers

The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.

Read More →
Hallway with lockered wiring and computer
Industryby Lauren LawrenceMay 28, 2026

Battery Storage Takes Priority Over EVs

U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.

Read More →
Ad Loading...
Gray-scale photo of a line of Mini cars in a dealership parking lot
Industryby Hannah MitchellMay 27, 2026

Auto Dealers Feel Better But Not Great

A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.

Read More →
Closeup photo of the front of a white car
Industryby Hannah MitchellMay 21, 2026

New-Vehicle Sales Picture Relative

A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.

Read More →
Nissan logo on front of building
Industryby Lauren LawrenceMay 21, 2026

Auto Group Acquires Third Nissan Rooftop

Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.

Read More →
Ad Loading...
Couple talking with auto salesman next to new car inside dealership
Industryby Hannah MitchellMay 20, 2026

April Less Affordable

Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.

Read More →
Wooden people figures of different colors in a row, similar to board game pieces
IndustryMay 20, 2026

Building an Extraordinary F&I Agency

Work to determine your specialized talent, because that fact will determine everything about your agency’s future.

Read More →
Ingredient card, policies and procedures, fixed operations, variable operations, data security, audit
Industryby Jim GantherMay 19, 2026

Recipe for Compliance

The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.

Read More →
Ad Loading...
Photo of new Chevrolet Bolt parked on a beach
Industryby Hannah MitchellMay 14, 2026

EVs Getting More Attractive

A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.

Read More →
Ad Loading...