Ford And Geely Agree On A $1.8 Billion Selling Price For Volvo

Geely has officially agreed to purchase Volvo for a price of $1.8 billion, which is far below the price of $6.45 billion which Ford paid during 1999.

The deal was signed yesterday in Sweden, and it’s expected that the agreement will only be finalized during October as Geely needs to receive regulatory approval from various countries.

The bid from Geely sees the Chinese automaker pay $1.6 billion upfront, with the remaining $200 million at a later date.

This sale will allow Ford to focus on their core brands.

“For Ford, the completion of the sale of Volvo Cars will conclude the divestiture of our global premium brand portfolio, allowing us to concentrate further on integrating the Ford core brand globally as we continue to execute our One Ford plan,” said Ford CFO Lewis Booth.

Geely are excited about the deal, and they are planning to use their new found technology to maximize profits all round.

“I see Volvo as a tiger. It belongs to the forest and shouldn’t be contained in the zoo,” said Geely chair Li Shufu in Mandarin. Referring to Volvo’s main factories, Li said, “The heart of the tiger is in Sweden and Belgium. … Its paws should extend all across the world.”