4x4 News: Fords Glee Over Selling Volvo To Geely

When Ford bought Volvo back in 1999, the company paid a reported $6.5 billion, but Ford have announced that it has entered into a definitive agreement with Geely, Chinese car manufacturer for $1.8 billion (1.2 billion). A spokesperson for Ford has said we at Ford believe that Volvos solid foundation, plus the commitment of Geely, will ensure that Volvo can continue to build its business and continue, to profitability.

The slump of the recession has had an effect on every industry in one way or another and the car industry is just one of many that have experienced a negative impact. According to the BBC News website, Ford hopes that the sale of Volvo will help it pay off its debts and focus on its core brands, following a dire period for the global car industry.

Volvo has seen success throughout the years, including its 4x4 models, such as the XC70 and XC90, which have achieved a 5/5 for safety and a 4/5 for reliability in a review by What Car? Not a bad evaluation if you ask me- but is it enough? PistonHeads.com reports that Ford can finally rid itself of Volvo, which hasnt turned a profit since 2005, however, Geely Chairman Li Shufu has reportedly said we are pleased to have reached this agreement with Ford, enabling us to safeguard and strengthen Volvos renowned brand heritage.

The BBC News website has reported that more than 13 million cars were sold in China last year a rise of nearly 50% on the previous year, which has lead Geely spokesperson to say they expect annual sales in China to total 400,000 this year which could help to boost Volvo and maybe even make a profit for the first time in 5 years.

LeftLaneNews.com have reported that the sale of Volvo represents the final step in Fords dismantlement of its Premier Automotive Group, which previously included Aston Martin, Jaguar and Land Rover. The story of Volvo under Fords ownership may not have given them a fairytale ending, but with Geely now in charge they are planning on re-writing the future of Volvo which could lead to a happy ever after for the Swedish marquee after all.