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Report: Volvo Sale to Geely Set for February 8th

Sale of Ford's last European brand rumored to be for $1.8 billion

 |  Jan 27 2010, 10:19 AM

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According to a recent report, Ford’s sale of Volvo to Chinese automaker Geely could go through as early as February 8th. Ford and Geely have already announced they are working out details of a plan with the latest rumor indicating that the sale could be for as little as $1.6 billion, with a $1.8 billion asking price more likely.

Ford purchased Swedish automaker Volvo back in 1999 for a staggering $6.45 billion, as it looked to create a European luxury division – which also included Aston Martin, Land Rover and Jaguar. A new corporate strategy has seen Ford sell off all but Volvo, a move which has been slowed by the recent economic downturn.

By offloading Volvo, Ford looks to loose almost $5 billion in a decade as it pursues a more focused brand strategy. By offloading its European brands Ford was able to steer clear of bankruptcy court, a move than has instilled consumer confidence in the brand and seen its sales surge while other automakers watched their sales decline.

[Source: TradingMarkets]