SOLD!!! Volvo goes to....

[SVT666]

Ford sells Volvo to Geely for $1.8 billion
03/28/2010, 11:39 AM
BY NICK AZIZ

 
Ford on Sunday announced it has entered into what is describes as a ?definitive agreement? to sell the Volvo brand to China?s Zhejiang Geely Holding Group, otherwise known in the industry simply as Geely.

Ford indicates the sale will close in the third quarter of 2010 and is subject to applicable regulatory approvals. Geely has agreed to pay $1.8 billion for the Swedish automaker, which was acquired by Ford in 1999 for $6.45 billion.

The sale of Volvo represents the final step in Ford?s dismantlement of its Premier Automotive Group, which previously included Aston Martin, Jaguar, and Land Rover. Ford sold Aston to a consortium of inventors in 2007 and divested itself of Jaguar and Land Rover in 2008.

In a statement to the press, Ford CEO Alan Mulally indicated the sale would ?allow us to further sharpen our focus on building the Ford brand around the world.? Ford will continue to provide Volvo with various components, presumably until the automaker can develop proprietary replacements.

[the Teuton]

...and now we know why the only Volvo S40 will be the automatic turbo sedan. It would probably cost them too much to offer two engines, two transmissions, and two body styles. I give Volvo a 10-year shelf life from here.

Go Spyker-Saab!

[ifcar]

...and now we know why the only Volvo S40 will be the automatic turbo sedan. It would probably cost them too much to offer two engines, two transmissions, and two body styles. I give Volvo a 10-year shelf life from here.

Go Spyker-Saab!

I'd have guessed it was because no one was buying a seven-year-old design anymore...

[GoCougs]

Wow - a loss of $5B -  that'll hurt the numbers - Meh, maybe Ford already wrote off the diminished value...

[the Teuton]

I'd have guessed it was because no one was buying a seven-year-old design anymore...

It's only five years old...I see your point, though.

[ifcar]

It's only five years old...I see your point, though.

Came out as a 2004 model. This is MY11.

[the Teuton]

Came out as a 2004 model. This is MY11.

When did MY2011 start showing up in Q1 2010?

[ifcar]

When did MY2011 start showing up in Q1 2010?

When the 2007 Tahoe came out on Jan. 1, 2006, I guess. There are a dozen or so 2011s on sale at this point.

But even if you want to call this 2010, that's still six years old with no redesign in sight.

[the Teuton]

When the 2007 Tahoe came out on Jan. 1, 2006, I guess. There are a dozen or so 2011s on sale at this point.

But even if you want to call this 2010, that's still six years old with no redesign in sight.

Is that any better than the S60 that spent 11 model years on the market?

[ifcar]

Is that any better than the S60 that spent 11 model years on the market?

Well, yes, six years is better than 11. But I don't think you ever hear me praising the S60. And I think it, too, has seen its engine offerings diminish over the years.

[Rupert]

I'd better buy an old 240 now, before they become overpriced collector cars.

[2o6]

Geely has the money, and a huge market that Volvo could do some good with.



Unless they have a deathwish, Geely will do fine. They have to.

[Laconian]

What? Geely could mismanage Volvo in any number of ways.

[Eye of the Tiger]

Volvo is dead.

[2o6]

What? Geely could mismanage Volvo in any number of ways.

And Geely will go down with them.

[Laconian]

And Geely will go down with them.

This makes no sense. GM didn't have a deathwish when they "managed" Saab into oblivion. Saab's poor performance and eventual demise might have had a dampening effect on GM's earnings, but GM didn't die because one of their little subsidiaries went down.

[2o6]

This makes no sense. GM didn't have a deathwish when they "managed" Saab into oblivion. Saab's poor performance and eventual demise might have had a dampening effect on GM's earnings, but GM didn't die because one of their little subsidiaries went down.

Thing is, GM has an engineering department. (At at the time, a decent product line) No doubt, Geely is going to use Volvo to make competitive products as well as trying to understand and enter the western market.

[CJ]

I think this may be a good thing.  Ford somewhat starved Volvo of money.  I think Geely might provide the necessary funds for Volvo to be great again.

[2o6]

I think this may be a good thing.  Ford somewhat starved Volvo of money.  I think Geely might provide the necessary funds for Volvo to be great again.

Exactly. Introducing Volvo to a huge, largely untapped market could work wonders.

[Onslaught]

Exactly. Introducing Volvo to a huge, largely untapped market could work wonders.

People with a pulse or passion? That would be a first for Volvo.

[SVT666]

I fear Volvo is finished.

[r0tor]

too bad for volvo...

[Onslaught]

I fear Volvo is finished.

Is that really bad? I've only known one person who really likes them. Most people have no feeling about them at all.

[r0tor]

i always liked the S40.... thought it would have been my car if the damn thing was about $7k cheaper for a T5 AWD manual tranny

[SVT666]

Is that really bad? I've only known one person who really likes them. Most people have no feeling about them at all.

I know a few people who have only ever owned one Volvo after another.  Personally, I would never buy one just because they don't suit my style.

[Raza]

Volvo is dead.

Agreed.

Volvo had a good run.   

[Onslaught]

I know a few people who have only ever owned one Volvo after another.  Personally, I would never buy one just because they don't suit my style.

I know a few people who have too. They're really dull people.

They actually make a very good car. Last a long time and are easy to work on. But man are they dull.

[Raza]

Thing is, GM has an engineering department. (At at the time, a decent product line) No doubt, Geely is going to use Volvo to make competitive products as well as trying to understand and enter the western market.

Mark my words, the day we buy Chinese cars is the day our country's reign ends. 

[2o6]

Mark my words, the day we buy Chinese cars is the day our country's reign ends. 

You're late for that.

[Submariner]

Mark my words, the day we buy Chinese cars is the day our country's reign ends. 

You cannot forget amnesty and cap and trade.