Hong Kong listed Zhejiang Geely Holding Group Company Limited, is about to be the owner of the iconic Volvo brand.
Ford, the American automobile manufacturer, confirms that all “substantive commercial terms relating to the potential sale of Volvo Car Corporation have been settled between Ford and Geely and they both anticipate that a definitive sale agreement will be signed in the first quarter of 2010”.
The final documentation, financing and government approvals are likely to be closed in the second quarter, subject to the appropriate regulatory approvals.
Zhejiang Geely is headquartered in Hangzhou, in mainland China. It has six manufacturing bases of complete vehicles and power assemblies respectively in Linhai, Ningbo and Luqiao in Zhejiang Province as well in Shanghai, Lanzhou and Xiangtan, with the manufacturing capacity of annually producing 300,000 complete vehicles and 300,000 engines and transmissions.
Ford says in a statement that the prospective sale will 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 will continue to cooperate with Volvo Cars in several areas after the possible sale, the company does not intend to retain a shareholding in the business.