After a long process, Ford has finally solidified a deal to sell its Volvo car unit to China’s Geely. Although the deal is not yet final, it’s expected to be closed by the second quarter of 2010.
The major areas of the terms have already been agreed upon by Ford and Geely, but the deal needs to be approved by the Chinese government to move forward. In the meantime, Geely will also need to secure financing.
Ford noted that the deal will provide Volvo with the resources and investment necessary to strengthen the brand and its business globally. Ultimately, Ford’s goal is to ditch its remaining European brand in order to better focus on its core products and continue to lower its debt.
As the only domestic automaker to avoid bankruptcy and a government bailout, Ford has not been without its fair share of setbacks. However, thanks to swift internal restructuring and new products on the way, Ford has acted nimbly amid the disastrous effects of a slumping global economy.
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