Geely buys Volvo from Ford

Known as one of the fastest growing car manufacturers in China, Geely Holding Group have completed the acquisition of Volvo Car Corporation from Ford Motor Company.

Ford Reaches Agreement to Sell Volvo Cars and Related Assets to Geely

28, 2010 – Ford Motor Company today announced it has entered into a definitive agreement to sell Volvo Car Corporation and related assets to Zhejiang Geely Holding Group Company Limited.

The sale is expected to close in the third quarter of 2010, and is subject to customary closing conditions, including receipt of applicable regulatory approvals.

The purchase price for Volvo Cars and related assets (primarily intellectual property) is $1.8 billion (U.S.), which will be paid in the form of a note in the amount of $200 million (U.S.), and the remainder in cash. The cash portion of the purchase price will be adjusted at close for customary purchase price adjustments relating to pension deficits, debt, cash and working capital, the net effect of which could be a significant decrease in the cash proceeds to Ford.

“Volvo is a great brand with an excellent product lineup. This agreement provides a solid foundation for Volvo to continue to build its business under Geely’s ownership,” said Alan Mulally, Ford’s president and CEO. “At the same time, the sale of Volvo will allow us to further sharpen our focus on building the Ford brand around the world and continue to deliver on our One Ford plan serving our customers with the very best cars and trucks in the world.”

Ford will continue to cooperate with Volvo Cars in several areas after the sale has been completed in order to ensure a smooth transition, but will not retain any ownership in the Volvo Cars business.

Following completion of the sale, Ford will continue to supply Volvo Cars with, for differing periods, powertrains, stampings and other vehicle components.

As part of the sale, Ford also has committed to provide engineering support, information technology, access to tooling for common components, and other selected services for a transition period to ensure a smooth separation process.

Ford and Geely have established agreements to govern the use of intellectual property; these agreements will allow both Volvo and Ford to deliver their business plans and provide appropriate safeguards against misuse. These agreements also will allow Volvo Cars to grant sublicenses to certain portions of Ford’s intellectual property used by Volvo Cars to third parties, including Geely.

“The Volvo team has done an exceptional job of restructuring its business and remaining focused on delivering its plan during the sale process,” said Lewis Booth, Ford’s chief financial officer. “With Ford’s continued investment in Volvo, it has launched its best-ever product range and remained true to its core values – safety, quality, environmental responsibility and modern Scandinavian design.

“We look forward to continuing to work with Volvo Cars, and wish the management team, employees and new owners every success for the future.”

“Zhejiang Geely would like to pay tribute to Ford’s stewardship of the Volvo brand, and we look forward to continued cooperation as Volvo embarks on the next stage of its evolution with Geely,” said Li Shufu, chairman of Zhejiang Geely Holding Group Company Limited.

Stephen Odell, CEO of Volvo Cars, added, “The Volvo management team fully endorses Ford’s sale of Volvo Cars to Geely. We believe this is the right outcome for the business, and will provide Volvo Cars with the necessary resources, including the capital investment, to strengthen the business and to continue to move it forward in the future.

“Geely has been very supportive of Volvo Cars’ business plans and management team. We look forward to building a strong relationship between Volvo Cars and Geely, and to maintaining a strong relationship with Ford in those areas where we will continue to work together to ensure a smooth transition.”

Source: Ford

Volvo XC60 Wins Prestigious 2010 International Truck of the Year Award

The Volvo XC60 was named 2010 International Truck of the Year by the International Car of the Year (ICOTY) jury on December 2. The award was given to Doug Speck, President and CEO of Volvo Cars of North America, LLC at the Volvo display at the 2009 Los Angeles Auto Show. The XC60 was chosen over 10 new crossovers, SUVs and trucks by a distinguished panel of top automotive journalists.

"This ties a very pretty bow around what's been a truly amazing year for Volvo," commented Speck. "The XC60 has not only been recognized by the media but it's been extremely well received by our customers."

2010 XC60 has helped VCNA earn six consecutive months of year-over-year sales increases since June.

The XC60 was chosen the winner from a panel of 19 automotive media from around the U.S. and Canada representing top newspapers, magazines and websites. The jurors must consider the ICOTY mission of "honoring vehicles that reflect an emotional connection between car and consumer lifestyles" when making their nominations.

"The ICOTY awards are not centered on power and performance," said Courtney Caldwell, ICOTY's creator and executive producer. "It's about how cars reflect our personalities, lifestyles and self image, an attitude most consumers identify with."

"This is one of the most prestigious car awards in the world and we feel very proud to receive it for our best-selling XC60", said Stephen Odell, President and CEO Volvo Car Corporation.

Once approved by the ICOTY nominating committee, the awards jury then bases their decision on a number of important criteria: The vehicle must be new or substantially revised, it must be offered for sale to the general public by the judging deadline of November 16, 2009, and may not have been previously considered for the ICOTY Awards.

The International Truck of the Year award marks the 20th accolade the Volvo XC60 has received since sales began in Europe in late 2008. The XC60 is the first vehicle to offer City Safety as standard equipment. This unique Volvo technology can help the driver avoid frontal collisions at low speed. If the driver is about to drive into the rear of a vehicle and does not react in time, the XC60 will apply the brakes by itself.

The Volvo XC60 was named 2010 International Truck of the Year by the International Car of the Year (ICOTY) jury on December 2. The award was given to Doug Speck, President and CEO of Volvo Cars of North America, LLC at the Volvo display at the 2009 Los Angeles Auto Show. The XC60 was chosen over 10 new crossovers, SUVs and trucks by a distinguished panel of top automotive journalists.

"This ties a very pretty bow around what's been a truly amazing year for Volvo," commented Speck. "The XC60 has not only been recognized by the media but it's been extremely well received by our customers."

The 2010 XC60 has helped VCNA earn six consecutive months of year-over-year sales increases since June.

The XC60 was chosen the winner from a panel of 19 automotive media from around the U.S. and Canada representing top newspapers, magazines and websites. The jurors must consider the ICOTY mission of "honoring vehicles that reflect an emotional connection between car and consumer lifestyles" when making their nominations.

"The ICOTY awards are not centered on power and performance," said Courtney Caldwell, ICOTY's creator and executive producer. "It's about how cars reflect our personalities, lifestyles and self image, an attitude most consumers identify with."

"This is one of the most prestigious car awards in the world and we feel very proud to receive it for our best-selling XC60", said Stephen Odell, President and CEO Volvo Car Corporation.

Once approved by the ICOTY nominating committee, the awards jury then bases their decision on a number of important criteria: The vehicle must be new or substantially revised, it must be offered for sale to the general public by the judging deadline of November 16, 2009, and may not have been previously considered for the ICOTY Awards.

The International Truck of the Year award marks the 20th accolade the Volvo XC60 has received since sales began in Europe in late 2008. The XC60 is the first vehicle to offer City Safety as standard equipment. This unique Volvo technology can help the driver avoid frontal collisions at low speed. If the driver is about to drive into the rear of a vehicle and does not react in time, the XC60 will apply the brakes by itself.

Source: Volvo

Volvo Cars tests new, unique safety technology in Copenhagen - in a disguised S60 prototype

Recently, sharp-eyed citizens in Copenhagen have had the opportunity to get a sneak preview of the upcoming, sporty Volvo S60 - which won't be introduced to the world until next year.

A disguised prototype of the new sedan model has been rolling through the streets of the Danish capital in order to test a groundbreaking new safety technology that can detect a pedestrian in front of the car and brake automatically if the driver doesn't react in time, to avoid an accident.

The new technology - Collision Warning with Full Auto Brake and Pedestrian Detection - will be introduced together with the all-new Volvo S60 in 2010. Volvo Cars' safety experts have been working with Pedestrian Detection technology for ten years and test cars have been rolling all over the world - most recently in the busy streets of Copenhagen.

"Factors like traffic behaviour, road conditions and climate must be taken into account in the design of the final system. All told we have collected more than 500,000 kilometres of real-life data. We can also use the information from these traffic tests to conduct advanced computer simulations," says Thomas Broberg, Senior Safety Advisor at Volvo Cars.

Recently, sharp-eyed citizens in Copenhagen have had the opportunity to get a sneak preview of the upcoming, sporty Volvo S60 - which won't be introduced to the world until next year.

A disguised prototype of the new sedan model has been rolling through the streets of the Danish capital in order to test a groundbreaking new safety technology that can detect a pedestrian in front of the car and brake automatically if the driver doesn't react in time, to avoid an accident.

The new technology - Collision Warning with Full Auto Brake and Pedestrian Detection - will be introduced together with the all-new Volvo S60 in 2010. Volvo Cars' safety experts have been working with Pedestrian Detection technology for ten years and test cars have been rolling all over the world - most recently in the busy streets of Copenhagen.

"Factors like traffic behaviour, road conditions and climate must be taken into account in the design of the final system. All told we have collected more than 500,000 kilometres of real-life data. We can also use the information from these traffic tests to conduct advanced computer simulations," says Thomas Broberg, Senior Safety Advisor at Volvo Cars.

First a warning, then automatic braking

Collision Warning with Full Auto Brake and Pedestrian Safety consists of a new dual-mode radar unit integrated into the car's grille, a camera behind the inside rear-view mirror and a central control unit. The radar and camera continuously monitor the road in front of the car. The radar's task is to detect objects and measure the distance to them. The camera determines what type of objects they are.

In an emergency situation, the driver is first alerted by an audible warning together with a flashing light in the windscreen's head-up display. In order to prompt an immediate, intuitive reaction, the visual warning is designed to look like a brake light coming on. If the driver does not respond to the warning and the system assesses that a collision is imminent, the car's brakes are applied with full braking power.

"Active brake deployment requires that the object is confirmed by both the radar and the camera. Thanks to state-of-the-art sensor technology, it is now possible to engage full braking power," explains Thomas Broberg.

Source: Volvo