It was confirmed by Ford Motor Company that it has sold its Swedish Volvo car unit for $US1.8 billion to China’s Geely Automobile Holdings.
It was seen that in the deal, $US200 million note and $US1.6 million in cash will be paid by Geely. According to Ford, the deal would be completed in the third quarter.
To maintain smooth working of the company, the US Company would co-operate with Volvo in certain areas but won’t keep hold of any ownership.
Ford and Volvo would be supplying each other with power trains, stamping and other vehicle components.
Mr. Odell, in his statement, said that Volvo was ahead of its recovery plans the will grow very fast in the market compared to any other car market. According to him, the production would rise from 330,000 to 390,000.
In December, Beijing Automotive Industry Holding planned to buy some assets of General Motors Saab Unit. Whereas it was seen last month that Sichuan Tengzhong Heavy Industrial Machinery, which is another Chinese company, discarded a planned purchase of GM’s Hummer unit after failing to get Chinese government approval.