Geely, the Chinese car manufacturer, has finalised an agreement with Ford Motor Company for the acquisition of their subsidiary Volvo.
The £955 million deal was first announced earlier this year after Volvo saw losses of $410m and a 10.6% drop in sales.
Despite the change in management, it seems that Geely plans to retain the existing Swedish and Belgium headquarters. The deal will also see Ford continue to supply engine components after the acquisition has been completed.
The handover took place at a special ceremony in London, which many commentators regarded as an example of Chinese ambitious to enter the global car industry.
Stefan Jacoby, newly appointed CEO of Volvo, said, “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.“
With factories staying open in Scandinavia and Belgium it seems that the acquisition will not necessarily lead to job losses – instead Geely intends to hire more staff in order to increase production by up to 50% in the next five years.
Geely’s other plans include expanding and transforming Volvo by creating new models that rival the luxury and prestige of BMW, Audi and Mercedes.
Li Shufu, Geely chairman, said, “This is a 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.”