It’s been some time since we last heard about the story concerning Volvo’s fate with the Chinese automaker Geely, but now after much negotiation and approvals from the EU, Zhejiang Geely Holding Group Company Limited has acquired the brand for $1.8 billion dollars. Geely originally put down $200 million on a note along with the balance in cash and has just now paid off the remainder. However the true total value of the sale will be revealed in due time, which could mean that Ford earns even more.
The terms of the sale might be even more interesting. Ford will continue to supply parts and equipment for varying amounts of time. The two automakers have also come to an agreement upon intellectual property rights allowing Volvo to issue licenses for use of specific parts or systems to third parties. For those of you at home silently worrying wondering if Volvo awaits a future in which some of the world’s safest cars turn into cheaply made death traps, fear not. Stefan Jacoby, formerly from Volkswagen will take over as new President and Chief Executive of Volvo Cars. The brand’s headquarters and manufacturing centers will also remain in Sweden and Belgium.