Ford in talks to sell Volvo to Geely

Ford has decided that they can no longer keep their money draining auto subsidiary Volvo in their fold. So they are in talks of selling to Chinese automakers Geely. Ford has reported that Volvo has been loosing money and that they are better off if sold to foreign investors.

Volvo, I would assume, would be nervous in such an undertaking. Their legendary design and safety ratings have made Volvo a favorite car for some loyal customers. The deal is worth an estimated $20 billion and could get Ford out of the hole and remain afloat a little longer.

Careful planning and innovative cars have kept Ford afloat during the recent recession. But they still need to cut to remain on a competitive edge. Volvo was just one of those pet projects they could no longer afford to keep.

Geely has been able to emerge competitively internationally by designing cars that are more affordable and innovative. They also seem to be better equipped to tackle the growing demand for cheaper, safer, reliable and more fuel efficient cars.

Image: Volvo.com