Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Volvo sold to Chinese automaker for $1.8 billion



Atlanta (CNN) -- Chinese carmaker Zhejiang Geely Holding Group has purchased Volvo cars from U.S. auto giant Ford, the Swedish carmaker announced Sunday.

The $1.8 billion deal represents the biggest ever purchase by a Chinese car manufacturer, but it is considerably less than the $6.4 billion Ford (F, Fortune 500) paid for Volvo in 1999.

"We are pleased to have reached this agreement with Ford, enabling us to safeguard and strengthen Volvo's renowned brand heritage," said Geely chairman Li Shufu.

"This transaction will ensure Volvo's continued leadership in the premium sector, where it enjoys a global reputation for safety and environmental-friendly technologies.

"Volvo will be a separate company with its own management team based in Gothenburg, Sweden."

He added Geely will help Volvo to realize its potential in the Chinese market.

"The agreement provides a solid foundation for Volvo to continue to build its business under Geely's ownership," said Alan Mulally, Ford's president and CEO, in a statement on the company's Web site.

"The sale of Volvo will allow us to further sharpen our focus on building the Ford brand around the world and continue to deliver on our One Ford plan serving our customers with the very best cars and trucks in the world."

Ford will continue to work with Volvo in the interim to allow a smooth transition of ownership. To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.99%3.98%
15 yr fixed3.17%3.13%
5/1 ARM3.33%3.37%
30 yr refi4.03%4.02%
15 yr refi3.19%3.15%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 19,251.78 35.54 0.18%
Nasdaq 5,333.00 0.00 0.00%
S&P 500 2,212.23 7.52 0.34%
Treasuries 2.40 0.01 0.38%
Data as of 6:31am ET
Company Price Change % Change
Bank of America Corp... 22.16 0.32 1.47%
Chesapeake Energy Co... 7.58 0.10 1.34%
Wells Fargo & Co 55.55 1.20 2.21%
Cisco Systems Inc 29.33 -0.20 -0.68%
Apple Inc 109.95 0.84 0.77%
Data as of Dec 6
Sponsors

Sections

SeaWorld Entertainment, which saw a sharp dip in attendance this year, will eliminate about 320 jobs, the company announced Tuesday. More

The Reserve Bank of India acknowledged Wednesday that the country's ongoing cash shortage is hurting the economy. More

Like with GamerGate and revenge porn, the 'Pizzagate' theory gained traction -- and an audience -- online. More

At least 398 colleges have food pantries on campus to serve students. The hunger problem is beyond a few sad stories. More