Volvo’s sale to Geely hits a roadblock

Alan-MulallyWhile Alan Mulally, President, Ford Motor Company has played a major role in making the impossible turnaround for the American automaker Ford Motor Company, but the way he has shed brands from its portfolio has laid the foundation for the strong position that the automaker is in today.

Be it the sale of Jaguar and Land Rover brand to Tata Motors for $2.3 billion or the sale of the Volvo brand to the China's home-grown automaker Zhejiang Geely Holding, the efforts have been going in to protect the Ford brand.

However, the $2 billion sale to Geely has hit a roadblock as the company is facing financing problems with regards to the deal. Geely is expected to close the deal by May this year but sources close to the matter say that the deal may well be called off keeping in mind the weak position the company is in currently.

Undoubtedly, the Chinese automaker is in a worse position as compared to the last year when ford was suffering through cash flow issues. Analysts believe that both the companies are in a negotiation stage currently and nothing concrete has been decided yet.