Geely Buys Volvo
Updated 5:27 PM
The Chinese car maker Geely has signed an agreement with Ford to buy the Swedish-based Volvo Cars unit.
The 1.8 billion dollar deal was announced at a joint press conference in Gothenburg Sunday afternoon. Taking part were Ford’s CFO Lewis Booth, Volvo’s CEO Stephen Odell, and the chairman and founder of Geely, Li Shufu.
Lewis Booth described the financing of the deal:
Speaking through an interpreter, Li Shufu told the press conference that the Volvo brand would remain Swedish and production would remain in Sweden.
Li Shufu said he saw huge untapped potential for Volvo in international markets and especially in China, which has not only the biggest but also one of the fastest growing car markets in the world.
Calling Volvo a tiger, Li said "The tiger has a heart and it lies in Sweden, (and) in Belgium but it's power should be projected all over the world.
Also present at the signing and the press conference were Swedish Minister for Enterprise Maud Olofsson and China’s IT and Industry Minister Li Yizhong.
After nearly two years of negotiations, this is China’s biggest overseas auto purchase.