Starting today, 2nd of august 2010, Volvo Cars has become the property of Geely Holding Group. Zhejiang Geely Holding Group Co., Ltd. paid no less than 1.8 billion US Dollars to Ford Motor Company for a one hundred percent acquisition of Volvo Car Corporation. Geely announced that the future President and Chief Executive Officer of Volvo Cars will be Stefan Jacoby, the Chief Executive of Volkswagen Group of America, taking up the new role starting 16th of August.
Mr. Li Shufu, the chairman of Zhejiang Geely Holding Group Company Ltd ensured the media that the Volvo brand will remain loyal to its characteristic qualities and design and that Volvo will retain both its headquarters and manufacturing facilities from Sweden and Belgium. The new 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. Aparently the new board will set the new strategies and directions for the Volvo brand, while the management will preserve the autonomy of executing its business plans. A part of this transaction implies that Volvo and Ford will maintain close component and supply relationships, in order to ensure continuity of services in areas where they provide supply to each other.
