Swedish car brand Volvo, previously owned by American auto giant Ford Motors, has been sold to China’s Zhejiang Geely Holding Group. The deal was inked for $1.8 billion making Geely as the new owners of the Swedish brand. The agreement was signed by Ford's Booth and Geely's chairman, Li Shufu, and witnessed by Li Yizhong, the Chinese minister of industry and information technology, as well as Swedish Minister for Enterprise and Energy Maud Olofsson. Details of the deal will be provided at a news conference later on Sunday, Volvo's spokesman Per-Ake Froberg said.
China has already surpassed the US market as the world’s largest car market in 2009. It has also proved to be a safe haven for all auto makers including the battered ones like General Motors or Toyota Motors. While General Motors has gained a firm footing on Chinese grounds, Toyota’s sales in Chinese market has largely remained unaffected.
Geely, parent of Geely Automobile Holdings, was named by Ford as the preferred bidder for its loss-making Swedish unit in October 2009. It plans to keep the brand and operations -- including Volvo's headquarters, production facility and research center - in Sweden. Ford had been trying to sell Volvo since late 2008 to focus its resources on managing its core Ford, Lincoln and Mercury brands.
