Ford Agree Terms with Geely and Off-Load Volvo
GM can’t give SAAB away at the minute, no-one wants to do business with them after the bankruptcy, obama took over, and then Koenigsegg, along with the Swedish government, announced they had been cooking the SAAB books. Fiat has shy-ed away, Suzuki bowed out of the working relationship, and now Isuzu are questioning the logic and direction of the government-owned auto manufacturer.
“Our venture in North America serves large-size vehicles, and there is definitely a question mark on that market,” Susumu Hosoi, President of Isuzu said. “I want to ask GM what their thinking is.”
Meanwhile Ford are set to collect an estimated $1.8 billion from the sale of Volvo to Chinese auto makers, Geely, as both companies announce the transaction should be completed early next year.
Continue to read the Ford press release
PRESS RELEASE:
DEARBORN, Mich., Dec. 23, 2009 – Ford Motor Company [NYSE: F] confirmed today that all substantive commercial terms relating to the potential sale of Volvo Car Corporation have been settled between Ford and Zhejiang Geely Holding Group Company Limited.
While some work still remains to be completed before signing – including final documentation, financing and government approvals – Ford and Geely anticipate that a definitive sale agreement will be signed in the first quarter of 2010, with closing of the sale likely to occur in the second quarter 2010, subject to appropriate regulatory approvals.
The prospective sale would ensure Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise, while enabling Ford to continue to focus on and implement its core ONE Ford strategy.
While Ford would continue to cooperate with Volvo Cars in several areas after a possible sale, the company does not intend to retain a shareholding in the business post-sale.
More details will be made available once the expected definitive sale agreement is signed in the first quarter of 2010.
