Ford has been struggling to find a home for Volvo for quite a while now. Last year we thought that Volvo might go the way of Pontiac and Saturn, but today the news from Beijing is that Volvo will be sold to China’ Zhejiang Geely Holding Group. According to the L.A. Times this sale will mark “the most significant push by a car company in China to tap overseas markets.”

Instrument Panel - 2010 Volvo S40 4-door Sedan Man FWD

Instrument Panel - 2010 Volvo S40 4-door Sedan Man FWD

This sale of Volvo isn’t necessarily going to be a win for Ford because of the losses they have seen since their purchase of the brand in 1999. Here are some numbers to consider; Ford bought Volvo in 1999 for some $6.45 billion and is now selling the brand 11 years later for $1.8 billion dollars. Straight off the top that is $4.65 billion dollars less and if you consider inflation the loss gets even bigger. The good news is that they didn’t throw away all $6.45 billion down the drain, but it will be interesting to see what Geely will be able to do with the once safety king of Sweden.

Ford is happy with the deal according to comments made to the Associated Press. "We think it's a fair price for a good business, and yes, we're happy with the deal we've achieved with Geely," Lewis Booth, Ford's chief financial officer, told the Associated Press. "Volvo can continue to build its business and return to profitability." This will be Geely’s first leap into the production of high-end vehicles as they currently only produce compact cars. So keep your eyes on the Volvo brand, who knows they could return to the well respected and profitable brand they once were.

[Source: L.A. Times]