It has been coming for months and now the Ford Motor Company has completed the sale of Volvo Car Corporation and its related assets to Zhejiang Geely Holding Group Company Limited.
The China-based company has bought Volvo and its assets for $1.8billion, which includes a $200million note and balance in cash. Geely issued the note yesterday and paid an additional $1.3billion to complete the sale.
Despite the sale, it is expected that Ford will continue to co-operate with Volvo across several areas in an effort to ensure a smooth transition even though it has not retained any ownership. For example, it will continue to supply Volvo with powertrains, stampings and other vehicle components for various periods. It has also agreed to provide engineering support and information technology along with access to tooling and other selected services.
Thanks to the agreements, Ford and Volvo will be able to deliver their business plans and establish the use of each other’s intellectual property.
The final purchase price adjustments are expected to be finalised later this year with additional proceeds likely to go to Ford.
