Geely Chief Becomes Volvo Chairman

For all those of you still hoping Ford will have a change of heart and give Volvo to anybody but the Chinese, Volvo's today announcement may come as a blow to the groin.

Geely and Volvo announced, in a joint statement, that Li Shufu, chairman of the board for Zhejiang Geely Holding Group will take up the same exact position within Volvo Car Corporation. The appointment is just foreplay, sort of speak, previewing the completion of the Volvo purchase sometime in the third quarter of the year.

Aside for Shufu's appointment, Hans-Olov Olsson, former CEO for Volvo, has been named vice-chairman. Stuart Rowley, Volvo CFO, was ousted, moving to the same position within Ford of Europe. All eyes now look to see who the new CEO of the company will be.

"We have made significant progress in assembling the team that will develop Volvo Cars under Geely's ownership. Today's board appointments underline my personal commitment to this famous company,
" Li Shufu said in a statement.

"The dual roles of Chairman and Vice-Chairman will combine my own knowledge and network from the Chinese market with Hans-Olov Olsson's extensive international experience from the automotive industry and Volvo Cars."

As stated back in March, Geely will pay Ford a total of $1.8 billion: the transaction will be initiated through a $200 million note of amount, with the rest of the money to be paid in cash.

Ford and Geely have developed an intellectual property management plan that will allow both companies to deliver their business plans without risks. The plan includes measures such as the granting of sublicenses for certain Ford intellectual property assets related to Volvo Cars to third party companies, including Geely.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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