Chinese Co. Buys Volvo for $1.8B

In keeping with China's emergence as the biggest automobile market last year, Chinese company Zhejian Geeling Holding Group Co. has bought Volvo from Ford Motor Co. This is the first time a Chinese company has taken the reins of a worldwide car brand, and the move primes the Chinese company to become a player in the international automotive business. Geely's Chairman Li Shufu likened Volvo to "a tiger" and said, "To liberate the tiger, we need to think on how to uncover the value in Volvo." The sale also works out for Ford, whose head honcho, Alan Mulally, has advised a weight-loss initiative of sorts—holding on to key brands while shedding others to bring the company back down to a more manageable level of profitability. Ford must use half of the money from the transaction to pay down the $23.5 billion debt it amassed in 2006.