Ford Motor Company Completes Sale
of Volvo to Geely
DEARBORN, Mich. - Ford Motor
Company announced it has completed the sale of Volvo Car
Corporation and related assets to the Zhejiang Geely Holding
Group Company Limited.
The total purchase price for Volvo
and related assets set forth in the agreement signed in March
2010 was $1.8 billion, including a $200 million note and the
balance in cash, with the cash portion subject to customary
purchase price adjustments at closing. Pursuant to the terms of
the agreement, Geely today issued the note and paid $1.3 billion
in cash to complete the sale. The estimated purchase price
adjustments used at closing are expected to be finalized and
settled following final true-up of the purchase price
adjustments later this year. The final true-up is expected to
result in additional proceeds to Ford.
"Volvo is an excellent brand with
a strong product line, and it has returned to profits after a
successful restructuring. We are confident Volvo has a solid
future under Geely's ownership," said Alan Mulally, Ford's
president and CEO. "At the same time, the sale of Volvo will
allow us to sharpen our focus on 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."
Ford will continue to cooperate
with Volvo in several areas to ensure a smooth transition, but
has not retained any ownership in the Volvo business. Ford will
continue to supply Volvo with, for differing periods,
powertrains, stampings and other vehicle components. Ford also
has committed to provide engineering support, information
technology, access to tooling for common components, and other
selected services for a transition period.