Geely Holding completed the acquisition of the Volvo

As announced on the signing of the stock purchase agreement on 28th March, 2010 Zhejiang Geely Holding Group Co., Ltd. of China has agreed to pay USD 1.8 billion for Volvo Car Corporation, which included a USD 200 million note with the balance paid in cash. Geely issued the USD 200 million note and paid USD 1.3 billion in cash for Volvo Cars, utilising financing from Chinese institutions and its own balance sheet as well as international capital market resources. Geely payed less than the agreed, due to adjustments in areas such as pension obligations and working capital.

Geely intends to keep Volvo's traditional orientation towards safety, quality, environmental care and modern Scandinavian design, and it will open the Chinese market to Volvo cars. 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.

Stefan Jacoby, who served as CEO of Volkswagen Group of America, has become the new President and CEO of Volvo Cars. He will join the board of Volvo Cars, chaired by Li Shufu, Chairman of Geely Holding Group. The board will comprise several new directors including Hans-Olov Olsson, a former President and Chief Executive of Volvo Cars and a former Chief Marketing Officer of Ford, who will become Vice-Chairman of the board.

As part of the transaction, Volvo and Ford will maintain close component and supply relationships, ensuring continuity in areas where they provide supply to each other.