Anyone who feared that Volvo may go the way of fellow Swedish brand Saab will be relieved to hear that the Ford Motor Company is confident a sale will be complete during the first quarter of 2010.
Ford has confirmed that all substantive commercial terms relating to the sale have been settled with Zheijang Geely Holding Group Company Limited. Though some work is still to be completed – such as final documentation, government approvals and financing – both companies anticipate that a definitive sales agreement will be reached in the coming months with the closure of the sale expected in the second quarter of 2010.
According to reports, the sale would ensure that Volvo has the resources necessary to strengthen the business and build a global franchise while Ford continues to focus on its ONE Ford strategy.
Ford will continue to co-operate with Volvo Cars after the potential sale but does not intend to retain a share-holding. More details will be revealed once a definitive sale agreement has been signed.
