Volvo to be Sold to Geely for $1.8 billion?

2011-volvo-s60Just as soon as reports came in of the sale of Saab,  reports came in just as quickly for a sale of Saab’s rival, Volvo.

Chinese brand Geely has been rumoured to be the preferred bidder of Volvo for quite some time now and it looks as though they are closer to acquiring the premium brand from Ford. And all it will cost them is $1.8 billion -a bargain!

You see, Ford purchased Volvo just over a decade ago to the tune of $6.25 billion. That’s over $4 billion lost in just eleven years. In all that time, it has been said that Volvo failed to be profitable to Ford, hence the reason of the sale.

But this may be poor timing to sell the brand. The product coming out of Volvo of late has been quite competitive. Both the XC60 and XC90 have been receiving high praise of late and the refreshed C30 and C70 are busy transforming Volvo’s image as sporty alternatives to the usual German heavy weights. And with the new shapely redesigned S60 (pictured above) coming for 2011, Volvo is sure to become a credible player in the premium segment.

The deal between Ford and Geely could go through as early as February 8th.

[Trading Markets]

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