Volvo in Chinese hands
August 2nd, 2010 by Richard Aucock
VOLVO is now officially owned by Chinese giant Geely following the acquisition of a 100 percent stake from Ford.
The completion of the deal has just been announced in a London ceremony.
Volkswagen Group of America cheif exec Stefan Jacoby will take over the help as president and CEO of Volvo Cars. He replaces Brit Stephen Odell, who’s heading for a senior role in Ford of Europe.
Importantly though, Volvo and Ford will maintain close component and supply relationships, ensuring continuity in areas such as platform and engine sharing.
Geely chief Li Shufu said: ‘This is a historic day for Geely,’ which has paid $1.8bn to Ford for the firm.
‘This famous Swedish premium brand will remain true to its core values of safety, quality, environmental care and modern Scandinavian design as it strengthens the existing European and North American markets and expands its presence in China and other emerging markets.’
Jacoby added: ‘I am honoured to join a company with the prestige and growth potential of Volvo.
‘Our employees, suppliers, dealers – and above all our customers – can be confident that Volvo will preserve its special status at the industry leader in vehicle safety and innovation – even as it pursues new market opportunities.’
Volvo secure in Sweden
Under the new ownership, Volvo Cars will retain its headquarters and manufacturing presence in Sweden and Belgium; and its management will have the autonomy to execute on its business plan under the strategic direction of the board.
‘The signing and completion of this acquisition reflects the commitment of Ford and Volvo executives to the future of this company, along with the vital input of labour representatives and government officials in Sweden, Belgium and China as well as other relevant countries,’ said Li.
Volvo car dealers, how significant is the completion of the deal to you?