Ford Sells Volvo to Geely

One less car badge that would have a “Made in the USA” tag. Ford officially announced that it will be selling Volvo to Zheijang Geely Holding Group. The deal is expected to close by the third quarter and has to go through all the necessary bureaucratic hoopla.

Anyway, Geely will be shelling out $1.8 billion for Volvo which Geely will be paying in form of a note worth $200 million and the rest by cash. Jeez. How rich are the Chinese these days? Richer than you, that is.

Ford CEO Alan Mulally says that the sale will allow Ford to focus more on its brand.

While the most profitable of the Detroit Three (Chrysler’s even questionable now that it’s owned by the Italians), Ford is struggling to keep pace with other automakers. Hyundai overtook Ford as the world’s fourth largest automaker last year.

I wonder if ever being Chinese-owned will affect Volvo’s track record of safety. Maybe they’d start painting the car with lead-based paint and use panels made up of toxic plastic.