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How Ford was desperate to offload a great brand, Volvo car corp., sold for Eleven billion.  A gift to the Chinese



  

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Wednesday, 29 June 2011
When the crisis hit, it is not clear whether Ford lost composure or there was something about Sweden that made them wanted to separately offload a great brand and hope out.

It turns out that Chinese Geely got a good price when they bought Volvo Cars from Ford last year.
The parent company, Geely Sweden Holding’s Annual Report provides a consolidated purchase price of approximately SEK 18 billion, according to Swedish business daily Dagens Industri.
The paper reports that the fair value of the net assets or net worth of the company was just over SEK 29 billion according to a reassessment done after the purchase.

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We had earlier on this network asked why Ford hurriedly sold Volvo cars the way it did. According to transcript from various studies about the relationship between Ford and Volvo, there were persistent conflicts about how things are done here and there between Volvo and Ford.

Management culture and approach to strategy brought lots of collusion between the Swedes and the Americans and when the crisis emerged Ford thought that it was a great chance for it to dispose of a brand they though would likely have no future with out them.

It turns out Volvo cars in doing well and all indications show that the company will grow pretty well.
May be Geerly has a strong relationship with Ford.
Buy Scancomark.se


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