Hangzhou, China – Volvo has officially been sold to China’s Zhejiang Geely Holding Group, as the company completed the acquisition from Ford.
Stefan Jacoby, previously the CEO of Volkswagen Group of America, will become Volvo’s president and CEO. He replaces Stephen Odell, who will move to Ford of Europe. Hans-Olov Olsson, former president and CEO of Volvo, will become vice-chairman of the board.
“This is a historic day for Geely, which is extremely proud to have acquired Volvo Cars,” said Li Shufu, chairman of Geely Holding Group. “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.”
Geely paid US$1.8 billion for Volvo Cars, comprised of a $200 million note and with the balance paid in cash. Geely used financing from Chinese institutions, its own balance sheet, and international capital market resources.
Under its new ownership, Volvo will retain its headquarters and manufacturing presence in Sweden and Belgium, and its management will have autonomy to execute on its business plan under the strategic direction of the board. As part of the transaction, Volvo and Ford will maintain their component and supply relationships, ensuring continuity in areas where they provide supply to each other.