Volvo Sale Completed

Volvo Sale Completed

Stefan Jacoby, the Chief Executive of Volkswagen Group of America, has become President and Chief Executive Officer of Volvo Cars, which has been bought by Zhejiang Geely Holding Group Co., Ltd.

The Geely Holding Group, one of the fastest-growing car manufacturers in China, has completed the acquisition of 100 per cent of Volvo Car Corporation ("Volvo Cars") from Ford Motor Company.

"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," said Mr Jacoby.

"This is an historic day for Geely, which is extremely proud to have acquired Volvo Cars. 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," said Li Shufu, the chairman of Geely.

The new board of Volvo Cars 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.

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.

Geely plans significant new investment in the brand to grow sales and provide greater economies of scale, especially in rapidly expanding markets like China.

“Volvo Cars in New Zealand is delighted by the ownership change,” said General Manager, Steve Kenchington. “And getting the experience of Stefan Jacoby to lead the company is a significant and positive step forward for the brand. The increased future investment in product development as a result of this acquisition bodes well for the future.”

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.

Mr Jacoby will succeed Stephen Odell as Volvo Cars' President and Chief Executive. Hans Oscarsson, deputy Chief Financial Officer, will become acting CFO of Volvo Cars, replacing Stuart Rowley.

Geely Holding Group was founded in 1986 with its headquarters in Hangzhou, China. With its associated companies Geely has established operations that include research, development and design to production, sales and servicing. They are a fully-integrated independent auto manufacturer producing cars, engines and transmissions. Today, they are one of China's fastest growing automotive manufacturers, as well as the industry's leading privately held group.

ENDS

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