Ford (NYSE:F) has agreed to sell its Volvo Cars unit to Chinese automaker Zhejiang Geely Golding Group (Zhejiang Province, China) for $1.8 billion, significantly less than the $6.45 billion Ford paid for Volvo in 1999, according to MarketWatch. In 2008, Ford sold the Jaguar and Land Rover brands to Tata Motors Limited, an Indian automaker, for $1.7 billion, much less than Ford originally paid for the brands.
Ford, under the direction of Alan Mulally, has significantly impacted US auto manufacturing, production and thinking, the same way that he did when he was at Boeing. Ford, the only one of the Big Three that did not take a bail-out, is slated to lead the US auto industry out of the slump that it's in, currently.
With the rapid convergence of in-car technology and the Internet, Ford said today it is offering a suite of security features to protect the personal information of millions of Ford owners from the threat of computer hackers and viruses. Ford's popular SYNC system allows owners to connect
digital media players and Bluetooth-enabled mobile phones to their vehicle's
entertainment system and operate them with voice commands. The mobile phone
also is a gateway to a number of Internet "cloud" services through SYNC's
Traffic, Directions and Information application that provides turn-by-turn
directions, business searches and more.
Ford is adapting methods and technologies most often associated with the fast-paced IT world to secure its mobile device-to-car connections from unwanted entry. Think firewalls, virus protection and password-controlled access.
Ford announced that Fusion sales to buyers new to Ford rose to 60 percent of total Fusion sales in February, up from 54 percent in January and 49 percent in 2009; Fusion Hybrid sales to buyers new to Ford increased to 82 percent last month from 70 percent in January and 63 percent in 2009.
These look like great numbers for Ford. Fusion’s share of the midsize car segment in 2010 has increased to 12.2 percent, up 4.4 points from the 7.8 percent share in the first two months of 2009. If Ford has a brand winner here, that can propel them for years to come.
Ford Motor Company confirmed Wednesday 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. As a result, the Ford and Geely anticipate that a definitive sale agreement will be signed in the first quarter of 2010, with closing of the sale likely to occur in the second quarter 2010, subject to appropriate regulatory approvals.
Ford Motor Credit, the finance arm of Ford Motor Company, is planning to sell a new issue of bonds due 2020.
Net proceeds of the bond sale will go toward Ford Motor Credit's general funds, according to the filing, and will be available for the purchase of receivables, for loans and for use in connection with the retirement of debt. Price guidance for the new offer, which is estimated to be $1 billion in size, has the notes yielding in the area of 8.25%-8.375%.
Ford, after decades of developing vehicle platforms with Japanese affiliate Mazda Motor Corp., intends to go it alone for future models.
"For a lot of designing and engineering, we're going to be focused on Ford," Mark Fields, Ford's president for the Americas, said on the sidelines of the Los Angeles Auto Show. "Our efforts will be focused on the Ford system, as opposed to relying on others such as Mazda."
United Auto Workers union overwhelmingly rejected a proposed cost-cutting deal with Ford Motor Company, delivering a setback for the automaker as it seeks to bring down labor costs in line with U.S. rivals.
The UAW said that 70% of production workers and 75% of skilled trade workers voted to reject a proposed agreement the union leadership and Ford Motor Company negotiated in October to change the 2007 four-year contract. The deal would have brought Ford Motor Company labor costs in line with General Motors Co and Chrysler Group LLC.
Editors at Popular Mechanics announced the winners of the magazine's
2010 Automotive Excellence Awards, and Ford Motor Company set a
precedent, winning more categories in a single year than any other automaker
in the history of the awards.
The Popular Mechanics Automotive Excellence Awards recognize the best in automotive design and technology for 2010 model year vehicles in 10 categories.
Ford Monday posted third-quarter net income of $997 million and its first operating profit since early 2008.Ford's revenue fell $800 million for the quarter, to $30.9 billion, due mainly to its financial services arm, Ford Motor Credit, making fewer loans.
Profit is big surprise.
Ford announced today that a consortium led by Zhejiang Geely Group Holding Co. Ltd. is its preferred bidder in the ongoing discussions concerning the possible sale of Volvo Car Corporation.
Ford said that while it will be engaging in more detailed and focused negotiations with Geely, no final decisions have been made.
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