The Weekly Driver

Website • Podcast • Newsletter

Established 2004

China's Geely finalizes deal to buy ailing Volvo from Ford

China's Geely finalizes deal to buy ailing Volvo from Ford 1Geely, the Chinese automaker that began 25 years ago as a refrigerator parts supplier, has finalized its agreement to buy Volvo the struggling Swedish manufacturer owned by Ford.

Volvo had been on the market since 2008 when Ford put several brands up for sale. Geely bought Volvo for $1.8 billion, the biggest overseas purchase by a Chinese car manufacturer.

“Today represents a milestone for Geely,” the company’s chairman Li Shufu said of the deal first announced last December.

China's Geely finalizes deal to buy ailing Volvo from Ford 2

Ford, which purchased Volvo in 1999 for $6.5 billion, hopes revenue from the sale will help pay off its debts. Volvo has not made a profit since 2005.

Geely, China’s biggest independent car maker, has pledged to keep Volvo as a separate company with its headquarters remaining in Sweden.

Geely, founded in 1986, has 12,000 employees and the capacity to manufacturer about 300,000 cars per year.

Geely said it will retain Volvo’s history in Sweden, but significant manufacturing is expected to take place in China, making Volvos for Chinese consumers.

More than 13 million cars were sold in China last year, a nearly 50 percent increase from 2008.

Subscribe!

To get our weekly newsletter with automotive news and commentary delivered to your email inbox.