When did Ford get rid of Volvo?
Ford Motor Company, one of the largest automakers in the world, has a history of acquiring and selling various automotive brands. One of its notable acquisitions was Volvo Cars, a Swedish automaker known for its focus on safety and innovation. However, Ford eventually decided to part ways with Volvo. This article explores when and why Ford sold Volvo, providing insights into the automotive industry's shifting dynamics.
Ford's Acquisition of Volvo
Ford acquired Volvo Cars in 1999 as part of its Premier Automotive Group (PAG), which also included brands like Jaguar, Land Rover, and Aston Martin. The acquisition was aimed at strengthening Ford's presence in the luxury car market and leveraging Volvo's reputation for safety and engineering excellence.
The Sale of Volvo by Ford
Ford sold Volvo Cars to the Chinese automaker Geely in 2010. The deal was finalized on August 2, 2010, marking the end of Ford's ownership of the Swedish brand. The sale was part of Ford's strategy to streamline its operations and focus on its core brands, such as Ford and Lincoln.
Reasons Behind the Sale
Several factors contributed to Ford's decision to sell Volvo:
- Financial Challenges: During the late 2000s, Ford faced significant financial difficulties, particularly during the global economic downturn. Selling Volvo helped Ford raise much-needed capital.
- Focus on Core Brands: Ford wanted to concentrate its resources on its primary brands, Ford and Lincoln, to ensure long-term sustainability and profitability.
- Changing Market Dynamics: The luxury car market was evolving, and Ford decided that Volvo would be better positioned under a new owner who could invest in its growth.
Impact of the Sale
The sale of Volvo to Geely proved to be a turning point for the Swedish automaker. Under Geely's ownership, Volvo has experienced a resurgence, launching successful models and embracing electrification. Meanwhile, Ford has benefited from its renewed focus on its core operations, emerging stronger in the years following the sale.
In conclusion, Ford sold Volvo to Geely in 2010 as part of a broader strategy to address financial challenges and refocus on its primary brands. This decision not only helped Ford stabilize its business but also allowed Volvo to thrive under new ownership.
Frequently Asked Questions
Why did Ford sell Volvo?
Ford put the division up for sale to raise capital in the wake of the Lehman Brothers crisis in 1999, having bought Volvo Cars from its previous parent, Swedish industrial group Volvo AB, which divested its car business to focus on building trucks.
Who owned Volvo in 2016?
Who owns Volvo Cars? Volvo Cars is owned by the Chinese conglomerate Zhejiang Geely Holding Group Co., Ltd., commonly known as Geely Holding. Geely is a multinational corporation that owns multiple businesses and brands in the automotive industry, and they took over the Volvo Cars brand in 2010.
What company owns Volvo now?
Volvo is currently owned by the Zhejiang Geely Holding Group, a company which owns over 15 other vehicle makers. Even with the wide array of brands that they own, the Zhejiang Geely Holding Group pays close attention to the unique aspects of each vehicle, continually working to make them better for drivers worldwide.
When did Ford sell Jaguar?
Ford owned Jaguar Cars, also buying Land Rover in 2000, until 2008 when it sold both to Tata Motors. Tata created Jaguar Land Rover as a subsidiary holding company.
Who all does Ford own?
Ford Motor Company: Ford, Lincoln, Troller. General Motors: Cadillac, GMC, Chevrolet, Holden. Renault-Nissan-Mitsubishi Alliance: Renault, Nissan, Infiniti, Dacia, Datsun, Samsung Renault, Lada, Mitsubishi.
What years did Ford own Volvo?
Renowned for their years of leadership in automotive safety, Volvo Cars was purchased by the Ford Motor Company and remained part of their Premier Automotive brands from 1999 to 2010. The automaker is now owned by Geely Automobile, a major automotive brand based in China.
When did Ford stop making Volvo?
2010
On 28 March 2010, Ford sold Volvo Cars at a loss to Geely Holding for $1.8 billion; the deal closed in August 2010. Volvo Cars was publicly listed on the Nasdaq Stockholm stock exchange in 2021, though Geely Holding still retains majority ownership.
Who makes Volvo today?
Geely Automobile
Renowned for their years of leadership in automotive safety, Volvo Cars was purchased by the Ford Motor Company and remained part of their Premier Automotive brands from 1999 to 2010. The automaker is now owned by Geely Automobile, a major automotive brand based in China.
How long was Volvo owned by Ford?
1999 to 2010
Renowned for their years of leadership in automotive safety, Volvo Cars was purchased by the Ford Motor Company and remained part of their Premier Automotive brands from 1999 to 2010. The automaker is now owned by Geely Automobile, a major automotive brand based in China.
Does Volvo still use 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.
