AUTO INDUSTRY NEWS

Geely Settles Commercial Terms for Acquisition of Volvo Car Corporation

Geely Settles Commercial Terms for Acquisition of Volvo Car Corporation image

Text: / Photos: | posted December 28, 2009 09:13

Geely ensures that Volvo will retain its leadership in safety and environmental technologies.

Geely announced that it has settled all substantive commercial terms related in acquiring Volvo Car Corporation from Ford Motor Company.

After the expected signing of a definitive stock purchase agreement with Ford in the first quarter of 2010, Geely plans to complete the transaction in the second quarter of 2010. Further discussions will focus on finalization of documentation and financing, as well as government approvals.

In recent weeks, Geely has also held constructive meetings with Volvo management, labor representatives and government officials in Sweden and Belgium - where its key manufacturing plants are based. "Geely is committed to work with all stakeholders to complete the transaction in the best interest of all parties." said Li Shufu, Chairman of ZGH.

Unlike what most people's first impression with Chinese cars being flimsy and unsafe, Geely ensures that Volvo will retain its leadership in safety and environmental technologies, if ever the stock purchase agreement be finalized. Volvo will still be uniquely-positioned as a world leading premium brand to exploit opportunities in the fast growing China market.

More details will be made available once the expected definitive agreement is signed in the first quarter of 2010.