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Geely Named Preferred Bidder for Volvo Car Corporation

October 28, 2009

HANGZHOU, China, Oct. 28 /PRNewswire-Asia/ — Zhejiang Geely Holding Group
Co. Ltd., a privately-owned Chinese automotive company, today welcomed Ford
Motor Company’s decision to name it as the preferred bidder for Volvo Car
Corporation.

Geely, having built one of the fastest growing automotive car companies in
China, will now embark on further detailed discussions with Ford, paving the
way for a potential acquisition of Volvo that will enshrine management
independence at the famous Swedish brand.

Today’s announcement follows extensive talks between Geely and Ford.
Under the proposed transaction, supported by Chinese banks, Volvo’s existing
production and R&D facilities, union agreements and dealer networks would be
maintained, while Geely would enhance Volvo’s access to sales networks and
sourcing opportunities in the important Chinese market. The strategy would be
led by an independent Volvo management, headquartered in Gothenburg.

Mr. Li Shufu, Chairman of Geely, said: “We are delighted with the progress
of our discussions with Ford. Should a final agreement be reached, Geely will
safeguard and strengthen Volvo’s world-renowned brand heritage, ensuring its
continued leadership as a premium car company with a global reputation for
safety and environmental technologies.”

By strengthening Volvo’s presence in China, a potential Geely transaction
would create major new opportunities and synergies in all business aspects for
Volvo in this rapidly expanding market.

Mr Li said: “This is an important strategic step for Geely, signalling our
commitment to Volvo’s presence in more than 100 markets around the world and
building on our strengths in the Chinese car industry.”

About Zhejiang Geely Holding Group Co. Ltd.

Zhejiang Geely Holding Group Co. Ltd. was founded in 1986 with its
headquarters in Hangzhou, China. Geely Holding Group and its associated
companies have established operations that span the automotive value chain,
from research, development and design to production, sales and servicing.
They are a fully integrated independent auto manufacturer producing cars,
engines and transmissions. Today, they are one of China’s fastest growing
automotive manufacturers, as well as the industry’s leading privately held
group.

    For more information, please contact:

     Mr. Yuan Xiaolin
     Zhejiang Geely Holding Group
     Tel:    +86-571-2813-6666
     Mobile  +86-137-1806-4551
     Email:  ma@geely.com

     Mr. Tim Burt
     Brunswick Group LLP
     Tel:    +44-207-396-7497
     Mobile: +44-7834-502-497
     Email:  geely@brunswickgroup.com

     Mr. Anders Fogel
     Brunswick Group LLP
     Tel:    +46-8-4103-2181
     Mobile: +46-709-627-842
     Email:  geely@brunswickgroup.com

SOURCE Zhejiang Geely Holding Group Co. Ltd.


Source: newswire



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