Ford Motor Co. announced today they have reached a "definitive agreement" to sell Volvo Car Corporation for $1.8 billion (U.S. dollars) to Chinese automaker, Zhejiang Geely Holding Group Company Limited.
The sale is expected to close in the third quarter of 2010. After the sale, Ford says it will continue, for differing time periods, to provide Volvo Cars with powertrains, stampings and other vehicle components. Ford has also committed to provide engineering support, information technology, access to tooling for common components and other support to provide a smooth transition.
“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,” said Alan Mulally, Ford’s president and CEO, in a company press release. “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.”