Motor Co. completes its sale of Volvo Car Corp. to China-based Zhejiang Geely today, receiving $1.8 billion for the Swedish auto maker, including a $200 million note and the balance in cash. Ford purchased Volvo in 1999 for $6.35 billion.
In a statement,CEO Alan Mulally says the sale will allow the auto maker to “sharpen our focus on the Ford brand around the world.”
Since Mulally joined Ford in 2006, he methodically has sold or eliminated a number of divisions, including Jaguar, Land Rover and.
In June, Ford announced it was discontinuing its Mercury brand in the fourth-quarter, leaving only the Lincoln luxury marque and core Blue Oval brand in the auto maker’s portfolio.
Under terms of the agreement with Geely, Ford says it “will continue to cooperate with Volvo in several areas to ensure a smooth transition,” including providing “engineering support, information technology, access to common components and other selected services for a transition period.”
Agreements between Ford and Geely will allow both auto makers to deliver their business plans and establish the proper use of each other’s intellectual property, Ford says, without providing details.
Geely today also names formerof America Inc. CEO Stefan Jacoby as new CEO of Volvo.
Prior to the completion of the sale, there have been a number of executive changes at both Ford and Volvo. Stephen Odell, former CEO of Volvo, is returning to Ford as group vice president and chairman and CEO of Ford of Europe.
Stuart Rowley, chief financial officer of Volvo, will take the same position at Ford of Europe.