Last week Ford reportedly had finalized the sale agreement of its Volvo brand to Geely. Today, Ford confirmed it will indeed sell Volvo to Geely in the second quarter of 2010.
Although not everything has been completed just yet, the major hurdles in Geely’s acquisition of Volvo have been cleared, as we reported last week. The two companies now only need to complete the final documentation of the sale and financing, and get the Chinese government’s approval for the sale. Both companies anticipate a definitive sale agreement will be signed in early 2010.
The companies’ goal is to complete the sale, which is subject to Chinese government approval, in early 2010. Barring any unforeseen closing regulatory action, Volvo will have a new owner by the second quarter of next year. This ensures Volvo will have the necessary resources to strengthen its franchise and also allows Ford to concentrate on its core brands.
After the likely sale, Ford will continue to cooperate with Volvo but will not retain any share in the Swedish automaker.