It has been announced recently that the European Union competition regulators have approved the sale of Ford Motor Co’s Volvo, to Chinese car maker Geely Automobile Holdings and investment firm Daqing. This comes after an investigation concluded that the “deal will not significantly impede competition in Europe,” in a statement from the EU executive.
The takeover worth US$2.7 billion was originally agreed on in March and is expected to be concluded sometime during the third quarter of this year. This is said to include $900 million to bring Volvo back into the black.
There have been rumours that to do this, the Chinese carmaker will be moving production to China, where other German and Japanese manufacturers have enjoyed booming sales and profits. Naturally the company itself is resistant to the idea, but this will be futile as Volvo is one step closer to being fully owned by Geely.
Even if that doesn’t happen, the upside to this takeover would mean that Volvo tech could be seen in Geely cars, which are almost half the price of the Sweedish models, thereby providing a sales boost for Geely range of cars.