Ford on Sunday announced it has entered into what is describes as a “definitive agreement” to sell the Volvo brand to China’s Zhejiang Geely Holding Group, otherwise known in the industry simply as Geely.
Ford indicates the sale will close in the third quarter of 2010 and is subject to applicable regulatory approvals. Geely has agreed to pay US$1.8 billion for the Swedish automaker, which was acquired by Ford in 1999 for US$6.45 billion.
The sale of Volvo represents the final step in Ford’s dismantlement of its Premier Automotive Group, which previously included Aston Martin, Jaguar, and Land Rover. Ford sold Aston to a consortium of inventors in 2007 and divested itself of Jaguar and Land Rover in 2008.
In a statement to the press, Ford CEO Alan Mulally indicated the sale would “allow us to further sharpen our focus on building the Ford brand around the world.” Ford will continue to provide Volvo with various components, presumably until the automaker can develop proprietary replacements.
