Geely Holding Group Completes Acquisition of Volvo Car Corporation

August 2, 2010

HANGZHOU, China and GOTHENBURG, Sweden, Aug. 2 /PRNewswire-Asia/ –
Zhejiang Geely Holding Group Co., Ltd. (“Geely Holding Group”), one of the
fastest-growing car manufacturers in China, today announced it has completed
the acquisition of 100 per cent of Volvo Car Corporation (“Volvo Cars”) from
Ford Motor Company.

Geely also announced that Stefan Jacoby, the Chief Executive of Volkswagen
Group of America, would become President and Chief Executive Officer of Volvo

Li Shufu said: “This is a historic day for Geely, which is extremely proud
to have acquired Volvo Cars. This famous Swedish premium brand will remain
true to its core values of safety, quality, environmental care and modern
Scandinavian design as it strengthens the existing European and North American
markets and expands its presence in China and other emerging markets.”

Stefan Jacoby, the new President and Chief Executive of Volvo Cars, said:
“I am honoured to join a company with the prestige and growth potential of
Volvo. Our employees, suppliers, dealers — and above all our customers — can
be confident that Volvo will preserve its special status as the industry
leader in vehicle safety and innovation — even as it pursues new market

Following completion of the transaction, Mr. Stefan Jacoby will join the
board of Volvo Cars, chaired by Li Shufu, Chairman of Geely Holding Group.
The board will comprise several new directors including Hans-Olov Olsson, a
former President and Chief Executive of Volvo Cars and a former Chief
Marketing Officer of Ford, who will become Vice-Chairman of the board.

As announced on the signing of the stock purchase agreement on 28th March,
Geely has agreed to pay USD 1.8 billion for Volvo Cars, which included a
USD 200 million note with the balance paid in cash.

Geely issued the note and paid USD 1.3 billion in cash for Volvo Cars,
utilising financing from Chinese institutions and its own balance sheet as
well as international capital market resources. The closing consideration
reflects adjustments in areas such as pension obligations and working capital.

Under the new ownership, Volvo Cars will retain its headquarters and
manufacturing presence in Sweden and Belgium; and its management will have the
autonomy to execute on its business plan under the strategic direction of the

As part of the transaction, Volvo and Ford will maintain close component
and supply relationships, ensuring continuity in areas where they provide
supply to each other.

Completion of the acquisition, which follows more than a year of talks
between Geely and Ford, was marked at a signing ceremony in London attended by
Li Shufu and Lewis Booth, Chief Financial Officer at Ford.

Mr. Li thanked Ford and the Volvo Cars management for their support during
the transaction negotiations, and also paid tribute to union and government
officials with whom Geely built close contacts.

“The signing and completion of this acquisition reflects the commitment of
Ford and Volvo executives to the future of this company, along with the vital
input of labour representatives and government officials in Sweden, Belgium
and China as well as other relevant countries,” said Mr. Li.

The Geely Chairman added that Mr. Stefan Jacoby will succeed Stephen Odell as Volvo Cars’ President and Chief Executive, taking up his role on 16th
August, 2010

Hans-Oskarsson, deputy Chief Financial Officer, will become acting CFO of
Volvo Cars, replacing Stuart Rowley. Mr. Odell and Mr Rowley are moving to
leadership roles at Ford of Europe.

Along with the new management team at Volvo Cars, Geely today named the
full board of directors for the Swedish carmaker, comprising:

    Li Shufu (Chairman)
    Hans-Olov Olsson (Vice-Chairman)
    Freeman H. Shen
    Hakan Samuelsson
    Dr. Herbert Demel
    Lone Fonss Schroder
    Winnie Kin Wah Fok

The board — which will include three labour representatives nominated by
unions at Volvo Cars — will assume its duties on completion of the

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

    For more information, please contact:

     Mr. YUAN Xiaolin
     Zhejiang Geely Holding Group
     Phone:  +86-571-2813-6666
     Mobile: +86-1371-806-4551
     Email:  ma@geely.com

     Mr. NING Shuyong
     Zhejiang Geely Holding Group
     Phone:  +86-571-2813-6868
     Mobile: +86-1585-810-3555
     Email:  ningsy@geely.com

     Mr. Tim BURT
     Brunswick Group LLP
     Phone:  +44-20-7396-7497
     Mobile: +44-7834-502-497
     Email:  geely@brunswickgroup.com

     Mr. Anders FOGEL
     Brunswick Group LLP
     Phone:  +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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