As part of Ford’s strategy to divest itself of higher-end European vehicles, the U.S. automaker closed its deal with China-based Zhejiang Geely Holding Group, which owns and manufactures the Geely vehicle line.
The deal, reportedly worth $1.8 billion, took place Aug. 2. The brand has been a money-loser for Ford. Volvo Cars of North America reported July 2010 U.S. sales down 33% from July 2009, with a 10%-decline for the first seven months of 2010. Canadian sales, however, were up more than 2% year to date.
The privately owned Geely began manufacturing cars in 1986. The Chinese government has supported the company financially. This gives the carmaker a major-name brand.
Ford and Geely announced initial conversations in October 2009 and okayed the deal in March 2010.
Volvos are expected to continue to be made in Sweden and Belgium.