DavidW2009
Petty Officer 1st Class
- Joined
- Sep 12, 2009
- Messages
- 272
The reason I ask is there's a news article that Ford (who use to own Volvo) has sold Volvo to China. If V-P is in the deal, I wonder what we can expect of the future of V-P, parts, durability, etc.?
Here's the article I saw:
China buys Volvo from Ford
Source: RTT News
URL Source: http://www.rttnews.com/ArticleView.aspx?Id=125044
Published: Mar 29, 2010
Author: staff
Ford Motor Co. (F: News ), Sunday said it has entered into a definitive agreement to sell Volvo Car Corp. and related assets to China-based car manufacturer Zhejiang Geely Holding Group Co. Ltd for a total value of $1.8 billion. The deal is expected to close in the third quarter of 2010 and Ford would continue to provide support for Volvo, without retaining any ownership, in order to facilitate a smooth transition.
The total value of the transaction will be paid in the form of a note amounting to $200 million and the remainder in cash.
The cash portion of the purchase price would be adjusted at close for customary purchase price adjustments relating to pension deficits, debt, cash and working capital, the net effect of which could be a significant decrease in the cash proceeds to Ford.
In a separate release, Zhejiang Geely said that it had secured all necessary financing to complete the transaction and significant working capital facilities to fund Volvo Cars' ongoing business.
On completion of the transaction, Volvo Cars would be a separate company with its own management team based in Gothenburg, Sweden, and a new board of directors.
Zhejiang Geely expects to develop Volvo Cars' leadership in safety and clean environmental technologies, expanding Volvo as a world-leading premium brand with a presence in more than 100 markets along with the fast-growing Chinese market.
Commenting on the transaction, Alan Mulally, Ford's president and CEO, said, "Volvo is a great brand with an excellent product lineup. This agreement provides a solid foundation for Volvo to continue to build its business under Geely's ownership."
"At the same time, the sale of Volvo will allow us to further sharpen our focus on building the Ford brand around the world and continue to deliver on our One Ford plan serving our customers with the very best cars and trucks in the world," Mulally added.
On the other hand, Li Shufu, chairman of Zhejiang Geely, said, "China, the largest car market in the world, will become Volvo's second home market. Volvo will be uniquely-positioned as a world-leading premium brand, tapping into the opportunities in the fast-growing China market."
The definitive transaction agreements that were signed by Li Shufu, chairman of Zhejiang Geely and Lewis Booth, chief financial officer of Ford include further agreements on intellectual property rights, supply and R&D arrangements between Volvo Cars, Geely and Ford, along with the stock purchase agreement.
Here's the article I saw:
China buys Volvo from Ford
Source: RTT News
URL Source: http://www.rttnews.com/ArticleView.aspx?Id=125044
Published: Mar 29, 2010
Author: staff
Ford Motor Co. (F: News ), Sunday said it has entered into a definitive agreement to sell Volvo Car Corp. and related assets to China-based car manufacturer Zhejiang Geely Holding Group Co. Ltd for a total value of $1.8 billion. The deal is expected to close in the third quarter of 2010 and Ford would continue to provide support for Volvo, without retaining any ownership, in order to facilitate a smooth transition.
The total value of the transaction will be paid in the form of a note amounting to $200 million and the remainder in cash.
The cash portion of the purchase price would be adjusted at close for customary purchase price adjustments relating to pension deficits, debt, cash and working capital, the net effect of which could be a significant decrease in the cash proceeds to Ford.
In a separate release, Zhejiang Geely said that it had secured all necessary financing to complete the transaction and significant working capital facilities to fund Volvo Cars' ongoing business.
On completion of the transaction, Volvo Cars would be a separate company with its own management team based in Gothenburg, Sweden, and a new board of directors.
Zhejiang Geely expects to develop Volvo Cars' leadership in safety and clean environmental technologies, expanding Volvo as a world-leading premium brand with a presence in more than 100 markets along with the fast-growing Chinese market.
Commenting on the transaction, Alan Mulally, Ford's president and CEO, said, "Volvo is a great brand with an excellent product lineup. This agreement provides a solid foundation for Volvo to continue to build its business under Geely's ownership."
"At the same time, the sale of Volvo will allow us to further sharpen our focus on building the Ford brand around the world and continue to deliver on our One Ford plan serving our customers with the very best cars and trucks in the world," Mulally added.
On the other hand, Li Shufu, chairman of Zhejiang Geely, said, "China, the largest car market in the world, will become Volvo's second home market. Volvo will be uniquely-positioned as a world-leading premium brand, tapping into the opportunities in the fast-growing China market."
The definitive transaction agreements that were signed by Li Shufu, chairman of Zhejiang Geely and Lewis Booth, chief financial officer of Ford include further agreements on intellectual property rights, supply and R&D arrangements between Volvo Cars, Geely and Ford, along with the stock purchase agreement.
