Volvo: The Lights Will Stay On (Probably)

Although we’ve said goodbye to Saab (Spyker put it another offer since this was posted, but it is not at all certain that anything will change), it seems that Volvo will stick around, although not as part of the Ford Motor Company.

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Although we’ve said goodbye to Saab (Spyker put it another offer since this was posted, but it is not at all certain that anything will change), it seems that Volvo will stick around, although not as part of the Ford Motor Company.

A statement from the company released this morning opens:

Ford Motor Company [NYSE: F] confirmed today that all substantive commercial terms relating to the potential sale of Volvo Car Corporation have been settled between Ford and Zhejiang Geely Holding Group Company Limited.

Yes, the Swedish firm will be owned by a Chinese company, assuming that the minutia is worked out—and while it is likely, it isn’t necessarily a lock.

The statement went on to say:

While Ford would continue to cooperate with Volvo Cars in several areas after a possible sale, the company does not intend to retain a shareholding in the business post-sale.

When Bill Ford, Jr., was doing TV ads that provided insights into what Ford is all about, safety was one of the highlighted areas. And a considerable amount of that safety technology was developed by Volvo engineers.

While, presumably, at least one of the “several areas” that Ford will cooperate with Geely in is safety, it is sort of sad that the Dearborn-based vehicle manufacturer has determined that Volvo isn’t part of its “ONE Ford” strategy.

Collaboration is cheaper than ownership, but the talent and capabilities exhibited by Volvo engineers are core—and priceless.