Bloomberg reports, citing sources close to the matter, that Ford decided to make the final transaction, with pening regulatory approvals and financing. The transaction is worth $1.8 billion and has been initiated through a $200 million note of amount, with the rest of the money to be paid in cash.
The conclusion of the deal comes after Geely's involvement with Volvo was cemented two weeks ago, when Li Shufu, chairman of the board for Zhejiang Geely Holding Group, was appointed chairman of the Volvo Car Corporation.
At that time, Hans-Olov Olsson, former CEO for Volvo, has been named vice-chairman, while Stuart Rowley, Volvo CFO, was sent to the same position within Ford of Europe.
The deal, which still raises eyebrows in Europe, will see Ford continue to supply certain components to Volvo and provide technical know-how and other related information to Geely. An intellectual property management plan that will allow both companies to deliver their business plans without risks has also been drafted.
Even so, Rebecca Lindland, an analyst for IHS Automotive, told Bloomberg that this deal is like “marrying a commoner to a blueblood,” with no chances of making it in the long term. This comparison pretty much sums up what Europeans think of the deal, one which has no lasting chance of survival.