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 fixed4.33%4.31%
15 yr fixed3.76%3.73%
5/1 ARM4.11%4.21%
30 yr refi4.31%4.28%
15 yr refi3.73%3.70%
Rate data provided
View rates in your area
Find personalized rates:
Index Last Change % Change
Dow 24,697.61 -29.66 -0.12%
Nasdaq 7,365.18 0.88 0.01%
S&P 500 2,717.06 0.12 0.00%
Treasuries 2.90 0.02 0.76%
Data as of 11:04am ET
Company Price Change % Change
Facebook Inc 168.39 0.24 0.14%
General Electric Co 13.76 0.12 0.90%
Advanced Micro Devic... 11.25 0.14 1.26%
Micron Technology In... 61.07 -0.08 -0.13%
General Mills Inc 45.26 -4.67 -9.35%
Data as of 10:49am ET


Despite President Trump saying the economy is "raging" and at an "all-time high," growth forecasts have been plunging for the first quarter of 2018. More

"It's like competing in an Olympic race wearing lead shoes," Elon Musk, referring to trade rules with China, tweeted to President Donald Trump. More

Is it possible to invest your savings and generate the same or more retirement income than buying an annuity? Sure. But it's not a given. More