Volvo sold to Chinese car firm Geely China to become Volvo's 'second home market'
29 March 2010
Chinese carmaker Geely has bought Volvo from parent company Ford for a reported £1.2bn. The announcement was made at Volvo’s HQ in Torslanda, Gothenburg yesterday by the chairman of Zhejiang Geely Holding Group Li Shufu (pictured far left), Swedish Minister for Enterprise and Energy Maud Olofsson and CEO of Volvo Cars Stephen Odell.
Geely was founded in 1986 and is now China's tenth largest car maker. This acquisition will give the Chinese company a stronger foothold into European markets, although Geely is keen to let Volvo exist independently. Shufu said, "This famous Swedish premium brand will remain true to its core values of safety, quality, environmental care and modern Scandinavian design.’
He continued, ‘China, the largest car market in the world, will become Volvo’s second home market.’ Shufu made a long term commitment to keep Volvo’s existing factories in Sweden and Belgium - thus safeguarding 20,000 jobs – but will also look into building a new plant in China to help build the new Volvo S60 and meet anticipated demand.
The move not only safeguards the future of Volvo, but it also eases the financial strain on Ford, too. The blue oval paid £4.34bn for Volvo in 1999, although Volvo has failed to make a profit since 2005. Ford has been looking for a new owner since 2008, when the company was also forced to sell off Jaguar, Land Rover and Aston Martin.
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