Monday, August 2, 2010
Geely buys Volvo from Ford
Known as one of the fastest growing car manufacturers in China, Geely Holding Group have completed the acquisition of Volvo Car Corporation from Ford Motor Company.In an agreement that took more than a year; Geely now own 100% of Volvo and have also brought aboard Stefan Jacoby as the president and CEO of Volvo, who was previously at Volkswagen Group of America.
Regarding the costs of the acquisition, Geely reportedly had to fork out an impressive 1.8 billion U.S. dollars which includes a 200 million U.S dollars note with the balance paid in cash. Geely got the financing for this mammoth amount from Chinese institutions, it's own balance sheet and international capital market resources.
Volvo Cars will still retain their headquarters and manufacturing presence in Sweden and Belgium. As can be expected, as part of the agreement Ford will remain a close component and supply partner with Volvo, this is to ensure that both parties still maintain the continuity of their vehicles.
The new CEO and president of Volvo Cars, Stefan Jacoby had this to say regarding the acquisition:
"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 as the industry leader in vehicle safety and innovation - even as it pursues new market opportunities."