Chinese automaker Geely, with government support, completes a deal with a corporation Ford and will soon become the owner of the automotive legend - the Swedish automaker Volvo informs Reuters.
The deal will amount to 2.7 billion US dollars, in addition, an additional 900 million will be invested in the working capital of the acquired company. Sources of funds were found both in China itself and abroad.
Zhejiang Geely Holding Group, the largest of the private Chinese automakers, announced its plans for the further fate of the production facilities of the Swedish Volvo. According to the head Geely Li Shufu, the brand will remain true to Swedish traditions, its headquarters will still be located in Swedish Gothenburg, all production ties and traditions will be maintained and strengthened. Two brands Geely и Volvo will develop in parallel, separately, independently of each other.
Geely intends to do Volvo profitable enterprise, one of the success factors will be the development of the rapidly developing Chinese market, which has now become the largest in the world, the company plans to establish a plant Volvo in China. For Gelly Another positive aspect of the acquisition will be not only possible profit in the future, but also a significant improvement in the company's image. From a manufacturer of low-cost, mid-range cars Geely becomes the owner of a legendary global brand.