Ford has announced this morning that all terms with relating to the sale of Volvo Cars to Zhejiang Geely Holding Group Company Limited have been settled. There is still more work to be done to complete the sale though. Ford anticipates that the final agreement will be signed by both parties in the first quarter of 2010 and the sale should be complete by the second quarter.
Although Ford will officially be selling Volvo, Ford still intends on working closely with Volvo in the future.
Expect more details soon…
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PRESS RELEASE:
DEARBORN, Mich., Dec. 23, 2009 – Ford Motor Company [NYSE: F] confirmed today that all substantive commercial terms relating to the potential sale of Volvo Car Corporation have been settled between Ford and Zhejiang Geely Holding Group Company Limited.
While some work still remains to be completed before signing – including final documentation, financing and government approvals – Ford and Geely anticipate that a definitive sale agreement will be signed in the first quarter of 2010, with closing of the sale likely to occur in the second quarter 2010, subject to appropriate regulatory approvals.
The prospective sale would ensure Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise, while enabling Ford to continue to focus on and implement its core ONE Ford strategy.
While Ford would continue to cooperate with Volvo Cars in several areas after a possible sale, the company does not intend to retain a shareholding in the business post-sale.
More details will be made available once the expected definitive sale agreement is signed in the first quarter of 2010.
