Volvo sale to Geely

Time 1:34 pm, March 29, 2010

volvo_s60_2CHINESE car manufacturer Geely has snapped up Swedish brand Volvo from Ford for a ‘bargain’ £1.2bn.

The agreement, signed today, marks the end of a firesale of Blue Oval brands, having sold off Jaguar and Land Rover to Tata last year.

The deal represents a huge loss for Ford which bought Volvo for 6.5bn dollars in 1999, but helps the American giant pay off debts.

‘Today represents a milestone for Geely,’ said the company’s chairman Li Shufu.

Volvo – which hasn’t made a profit since 2005 – has been for sale since 2008. Geely is China’s biggest independent car maker and has pledged to keep Volvo a separate company with its headquarters staying in Sweden.

But the new owners plan to repidly expand its operations in China, a burgeoning market that is ripe for the brand.

What does the move mean for dealers? Well, on the face of it very little. With the maker’s headquarters remaining in Sweden, operations in the UK aren’t likely to be affected.

James Baggott's avatar

James is the founder and editor-in-chief of Car Dealer Magazine, and CEO of parent company Baize Group. James has been a motoring journalist for more than 20 years writing about cars and the car industry.

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