Official: Geely gets Volvo for $1.8B

Ford Motor Company said Monday that it had completed the sale of its Swedish unit Volvo to Zhejiang Geely Holding Group.

Geely paid $1.3 billion cash for the carmaker, issued a $200 million note payable to Ford, and further payments are expected with a later price “true-up,” Ford said in its statement. In March, when the deal was announced, the price tag was put at $1.8 billion.

“Pursuant to the terms of the agreement, Geely today issued the note and paid $1.3 billion in cash to complete the sale,” Ford said in a statement.

Ford said it will continue to cooperate with Volvo in several areas, but hasn’t retained any ownership. The company will continue to supply vehicle components and engineering support and other services for a transition period.

• Volvo may lose supplier contracts if Geely bid succeeds
• New Geely has ample reasons to acquire Volvo
• Geely-Volvo may be ‘Lenovo-IBM’ in auto industry
• Geely Volvo Beijing factory not okayed by local gov’t yet
• Geely to double Volvo sales to 1 mln vehicles a year
• Geely banks on China market for Volvo brand revival
• Ford Confirms Geely as its Preferred Bidder for Volvo Cars

• Volvo may lose supplier contracts if Geely bid succeeds
• New Geely has ample reasons to acquire Volvo
• Geely-Volvo may be ‘Lenovo-IBM’ in auto industry
• Geely Volvo Beijing factory not okayed by local gov’t yet
• Geely to double Volvo sales to 1 mln vehicles a year
• Geely banks on China market for Volvo brand revival
• Ford Confirms Geely as its Preferred Bidder for Volvo Cars