Ford close to selling Volvo brand

Ford has reportedly reached an agreement with China’s Geely to sell its Volvo unit.

volvo

According to various reports both sides expect a sale of the Swedish auto brand to close in early 2010.

China’s largest private automaker, Geely, is keen on acquiring modern technology to upgrade its car line-up and bring it closer to becoming a global competitor.

General Motor’s Saab brand has already sold components of its business to China’s Beijing Automotive Industry Holdings (BAIC). That deal will not be affected by the latest announcement.

For Ford, closing the sale would provide it with cash it could use towards its goal of speeding up debt repayment as the automaker moves towards profitability it has projected for 2011.

Ford’s progress towards a sale comes as its traditional rival, General Motors moves closer to abandoning Saab, its rival Swedish car brand. Dutch luxury car builder Spyker Cars has revived talks to buy Saab this week, but it remains highly uncertain whether the two sides can reach an agreement by GM’s year-end deadline, a person familiar with those talks said on Tuesday.

Ford CEO Mulally said last week the Volvo talks with Geely were “progressing well” and Ford expected to have an announcement soon.

“We haven’t put any timetable because they are very sophisticated conversations and we want to make sure we get it right for both parties,” he said.

Ford paid $6.45bn (£4.04bn) for Volvo in 1999. The Swedish marque is fairly successful across Europe, but the brand is deemed low-value by Ford.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here