Canadian Volvo dealers safe

There is no plan to alter Canada’s Volvo dealer landscape if the sale to China’s Zhejiang Geely Hold Group is approved later this year.

Representatives for the Canadian subsidiary confirmed to Canadian AutoWorld that the 41 dealers and their franchise agreements would be retained.

Geely was named “preferred bidder” by Ford for the Swedish brand last fall. Both sides had been negotiating a price before going public with the tentative agreement in late March.

Under the released terms, the Asian auto company would fork over US$1.8 billion for the brand and its intellectual property.

A final decision on the sale is expected in a few months. Canadian Volvo rep Chad Heard said inventory distribution had always been managed by Volvo Canada, a process that would not change if the sale goes through.