The deal is complete: Geely gets Volvo, Ford gets $1.8B
Business deals can be so long and tedious sometimes. Just ask Ford and Geely. After what seemed like an eternity of paperwork and projections, the deal between Ford and Geely for Volvo is finally complete. Originally, the purchase price for Volvo was $2B, but it seems that the sale was completed at $1.8B. Back in March, Geely paid Ford with a note of $200M and some cash. Today, Geely paid off the remaining $1.3B to gain ownership of the Swedish builder, but the final purchase price including closing adjustments will not be revealed until later this year.
As part of the agreement, Ford will continue to supply Volvo with powertrains, stampings, and other vehicle components for differing periods. They have also reached an agreement in terms of intellectual property; both brands will deliver their business plans and establish the proper use of each other’s intellectual property.
As with all business transactions, management positions will be moved around to fill the necessary spots in Volvo. Stefan Jacoby, formerly from Volkswagen, will be Volvo Cars’ President and Chief Executive taking the place of Stephen Odell who will be moving over to another leadership position within Ford. Volvo will receive a new CFO by the name of Hans-Oskarsson, who is currently deputy Chief Financial Officer. Stuart Rowley will also be given a leadership position within Ford Europe.
Volvo will keep their headquarters and manufacturing centers in Sweden and Belgium.
Congratulations guys. We hope this long and tedious transaction works out for both sides.