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 fixed3.32%3.52%
15 yr fixed2.59%2.67%
5/1 ARM2.90%2.94%
30 yr refi3.34%3.52%
15 yr refi2.61%2.71%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 18,228.30 133.47 0.74%
Nasdaq 5,305.71 48.22 0.92%
S&P 500 2,159.93 13.83 0.64%
Treasuries 1.56 -0.03 -2.08%
Data as of 1:25am ET
Company Price Change % Change
Chesapeake Energy Co... 6.23 -0.39 -5.89%
Bank of America Corp... 15.29 0.20 1.33%
Procter & Gamble Co 88.36 0.51 0.58%
Ford Motor Co 11.98 -0.03 -0.25%
Micron Technology In... 18.00 0.64 3.69%
Data as of Sep 27
Sponsors

Sections

Wells Fargo executive Carrie Tolstedt could still walk away from the bank with $77 million in stocks and options, despite new efforts by the bank to curb her controversial pay. More

Despite attacks from Republicans including Donald Trump, the Federal Reserve is a big money maker for U.S. government. More

SpaceX CEO Elon Musk laid out his plan to put humans on Mars to eventually form a self-sustaining colony. More

Low interest rates have pushed some housing markets around the world into bubble-risk territory, according to a new report out of UBS. More