Ford completes Volvo sale to Geely

Posted on Aug 3, 2010 by

's new chairman of the board is 's Li Shufu

has completed the sale of the Swedish brand Volvo to the Chinese car company Geely.

The $1.8 billion (6.6 billion AED) deal was first agreed back in March and sees Geely take over 100 percent of Volvo. The Chinese firm has already announced a new management structure. Stefan Jacoby, the former chief executive of Volkswagen Group of America is now president and CEO of Volvo Cars. He replaces Stephen Odell, who is now chairman of Ford of Europe.

Li Shufu, the chairman of the Geely Holding Group, will take over the chair of the Volvo board, which will comprise several new directors including former Volvo president and chief executive Hans-Olov Olsson, who will become vice-chairman.

Volvo will keep its headquarters and factories in Sweden and Belgium and maintain its part and supply relationship with Ford, meaning Blue Oval engines and gearboxes are likely to continue to appear in Volvo cars. Ford is also offering to continue its IT support and tooling supply to the Swedish marque.

Alan Mulally, CEO of Ford, said the move would enable his company to sharpen its focus on the Ford brand.

Mr Li said he wanted to see Volvo sales double to 600,000 over the next five years, largely by focusing on the Chinese market. He also told the Financial Times that he wanted to produce a high-end vehicle to target German rivals.

“At the moment we are competing with BMW, Audi and Mercedes, but we don’t have a product to compete with the BMW 7-Series and Mercedes S-class,” he said. “We need to fill that gap”.

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