Did Ford own Volvo?
When it comes to the history of automotive giants, ownership and acquisitions often play a significant role in shaping the industry. One such notable relationship is between Ford Motor Company and Volvo Cars. In this article, we’ll explore whether Ford ever owned Volvo and what that meant for both companies.
Ford's Acquisition of Volvo
Yes, Ford Motor Company did own Volvo Cars for a period of time. In 1999, Ford acquired Volvo Cars from the Swedish company AB Volvo for $6.45 billion. This acquisition was part of Ford's strategy to expand its portfolio of luxury vehicles under its Premier Automotive Group (PAG), which also included brands like Jaguar, Land Rover, and Aston Martin.
Volvo Cars, known for its focus on safety and innovative engineering, became a key player in Ford's luxury division. During this time, Ford leveraged Volvo's expertise in safety technology and engineering to enhance its own vehicle lineup.
The End of Ford's Ownership
Ford's ownership of Volvo Cars lasted until 2010. Facing financial challenges during the global economic downturn, Ford decided to streamline its operations and focus on its core brands. As a result, Ford sold Volvo Cars to the Chinese automaker Geely Holding Group for $1.8 billion. This marked the end of Ford's involvement with Volvo Cars.
Under Geely's ownership, Volvo Cars has continued to thrive, maintaining its reputation for safety and innovation while expanding its global presence.
Key Takeaways
- Ford acquired Volvo Cars in 1999 for $6.45 billion as part of its Premier Automotive Group.
- Volvo Cars contributed significantly to Ford's luxury vehicle lineup, particularly in safety and engineering advancements.
- In 2010, Ford sold Volvo Cars to Geely Holding Group for $1.8 billion, ending its ownership.
In conclusion, Ford's ownership of Volvo Cars was a significant chapter in the history of both companies. While it was a relatively short-lived partnership, it had a lasting impact on the automotive industry, particularly in the areas of safety and luxury vehicle development.
Frequently Asked Questions
Who is Volvo owned by?
the Zhejiang Geely Holding Group
Volvo is currently owned by the Zhejiang Geely Holding Group, a company which owns over 15 other vehicle makers.
Who owns Ford?
Ford is owned by a diverse group of shareholders but largely controlled by the Ford family. This is made possible through Ford's dual-class stock structure that concentrates voting rights in Class B shares. The Class B shares account for 2% of the company but collectively hold 40% of the voting power.
How many brands did Ford own?
Ford now encompasses two brands: Ford and Lincoln. Ford once owned 5 other luxury brands: Volvo, Land Rover, Jaguar, Aston Martin, and Mercury. Over time, those brands were sold to other companies and Mercury was discontinued.
Does China own 50% of Ford?
Ford owns many subsidiaries, with some of the most important focused on finance, smart technology, and joint ventures. Some of Ford's most important international operations include a 50/50 joint venture in China and a 50/50 joint venture in Thailand.
Who makes Volvo engines?
The Volvo Engine Architecture (VEA) is a family of straight-three and straight-four automobile petrol and diesel engines produced by Volvo Cars in Skövde, Sweden, since 2013, Zhangjiakou, China, since 2016 and Tanjung Malim, Malaysia, since 2022 by Proton.
Is Volvo using Ford engines?
Until 2014, Volvo Cars used some engines of its own and others from Ford. Now, however, the Volvo Engine Architecture (VEA) set of engines is found in all Volvo vehicles. This family of three- and four-cylinder engines are entirely designed by the Scandinavian company.
Has Ford ever owned Volvo?
The Ford Motor Company purchased Volvo Cars in 1999, then sold them to Geely Automobile in 2010. Geely Automobile's headquarters is in Shanghai, while Volvo Cars still maintains its headquarters in Gothenburg, Sweden.
Why did Ford sell Volvo to China?
Ford sold Volvo because they needed the money to save the rest of the company. Many figured that Volvo's Swedish days were numbered after the divorce from Ford and Geely's purchase: “First in line to disappear would be production, then product development”, was the general feeling.
Is Volvo 100% Chinese owned?
Geely, the biggest shareholder, controls Volvo Cars though there are other stakeholders as well for the company operates as an autonomous firm under the Chinese conglomerate. Volvo Cars has managed to stay separate from Geely despite having its majority shares owned by this Chinese multinational corporation.
Why did Ford sell Jaguar?
Ford sold Jaguar mostly because of losses it had experienced at the time ($700 million), and over the course of its 19-year ownership of Jaguar, according to some estimates, cumulative losses of $10 billion.
