It’s official – Zhejiang Geely Holding Group Company Limited (or Geely as its known to you and me) has completed its acquisition of the Volvo Car Corporation from Ford Motor Company. This has been done to a tune of a US$1.8 billion amount which was originally agreed upon in March 2010.
This purchase price was made out of a US$200 million note with a cash balance subject to customary purchase price adjustments at the close of the sale. Geely have now paid off the note and US$1.3 billion in cash to complete the sale. Final balance figures are expected to be finalized later this year.
On the matter of technology and manufacturing, Ford will continue to supply Volvo with powertrains, stampings and other vehicle components at differing periods. This also includes engineering support, information technology, access to tooling for common components, and other selected services for a transition period. In terms of intellectual property, agreements are currently being made to govern the use of Volvo’s intellectual property by Ford.
Former Volkswagen Chief Executive of America Stefan Jacoby, has been appointed the new President and Chief Executive of Volvo Cars. They will also retain their headquarters and manufacturing presence in Sweden and Belgium while the management will be allowed independence to execute its own business plans with direction from its new board.
An exciting step for both companies, that will no doubt see the rise of Geely as a global market player and the influx of Chinese investment into one of the top Swedish auto brands.