Ford Buys Volvo Passenger Car Div.
ord is expected to assume ownership of Volvo Cars' worldwide sites, including three assembly plants and two powertrain plants in Europe and the passenger-vehicle product development center in Gothenburg, Sweden.
on-automotive products.
"Ford Motor Co. is a tremendously good home and custodian for a diverse grouping of brands," Jac Nasser, Ford's president and chief executive officer, said Thursday.
The deal is subject to approval by regulators and stockholders.
Ford is no stranger to Sweden, where the Detroit-based automaker has been operating since 1924 and now sells passenger and commercial vehicles through an 87-dealer network.
"We are not just in Sweden, we are part of Sweden," Nasser said. "And through our new relationship with Volvo, we plan to be part of the fabric of the country for many years to come."
Volvo said the sale would allow the company to concentrate on its other operations, including commercial vehicles and interests such as construction equipment, marine engines and aerospace equipment.
It also said being part of a "very large automotive company" would allow it to invest more in development and distribution.
"Now, Volvo can concentrate its resources towards becoming a world leading producer of commercial products," said Volvo president Leif Johansson, according to the Swedish news agency TT.
he merger is complimentary for both companies, said analyst Gregory Kagay, of McDonald & Co., in Birmingham, Mich.
"This is sort of like a whale swallowing a guppy," Kagay said. "The implications for the industry are not overwhelming."
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