Chinese car manufacturer Geely yesterday completed a $1.5bn deal with Ford to purchase Volvo.
This is one of the first business deals the company has made outside of China but today they are also in talks with Manganese Bronze makers of London Taxis of which they already own 23%. Geely chairman Li Shufu said:
“ (This is) a historic day for Geely.”
The deal marks the first time a global car brand has been subject to a takeover by a Chinese company.
Many were initially concerned about the venture as Volvo have a strong reputation for their Scandinavian values, but Mr Li reassured peoples concerned saying:
“This famous Swedish brand will remain true to its core values of safety, quality, environmental care and modern Scandinavian design.”
Stefan Jacoby, the former boss of Volkswagen America has also been confirmed as the companies new Chief Executive and echoed Mr Li’s comments.
Geely is one of China’s biggest car companies but due to the fragmented market in China they only sold 330,000 vehicles, the same as Volvo.
Geely plan on using Volvo’s technology and development to boost sales in China but also plan to use Volvo’s reputation in the West to get the Geely name out,
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