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DEARBORN, Mich. — Volvo Car Corp. is now officially under new ownership. The sale of the Swedish car brand from Ford to Zhejiang Geely Holding Group has wrapped up, and the Chinese company now owns 100 percent of Volvo Cars.

It was also revealed that taking the reigns atop Volvo Cars as president and chief executive officer will be Stefan Jacoby, Volkswagen Group of America's current chief executive.

To purchase Volvo Cars and its related assets, Geely committed as part of the agreement signed back in March to pay Ford $1.8 billion. As outlined in the agreement, included in this total was to be $200 million note with the rest being paid in cash. The terms deem that the cash portion could be altered at based on customary purchase price adjustments at closing.

So, to fulfill the terms of the purchase, Geely issued the note to Ford and paid the automaker $1.3 billion in cash.

There will be a final true-up of the purchase price sometime in 2010. After that, the companies anticipate that the estimated purchase price adjustments will be wrapped up. It is projected that Ford will gain more proceeds from the true-up.

"Volvo is an excellent brand with a strong product line, and it has returned to profits after a successful restructuring. We are confident Volvo has a solid future under Geely's ownership," stated Alan Mulally, Ford's president and chief executive officer.

"At the same time, the sale of Volvo will allow us to sharpen our focus on the Ford brand around the world and continue to deliver on our One Ford plan serving our customers with the very best cars and trucks in the world," he added.

New Leadership

Discussing Jacoby's new position in more detail, officials noted that his post begins Aug. 16. Jacoby also becomes part of Volvo Cars' board once the transaction is concluded. 

"I am honored to join a company with the prestige and growth potential of Volvo," Jacoby shared. "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 opportunities."

Per prior announcements, Volvo Cars CEO Stephen Odell now becomes group vice president and chairman and CEO of Ford Europe.

Meanwhile, Stuart Rowley, who was Volvo Cars' CFO, will take that same role with Ford Europe.

"Volvo is a proud company with a talented and dedicated team of employees," Odell noted.

"I am especially pleased that with Ford's continued investment in recent years, Volvo is well-positioned for the future with an exciting range of products that remain true to its core values — safety, quality, environmental responsibility and modern Scandinavian design," he added.

Volvo's new board of directors — which will begin its duties once the transaction is completed — will be headed up by Li Shufu, who is the chairman of Geely Holding Group.   

As far as the company's locale, Geely officials noted that: "Under the new ownership, Volvo Cars will retain its headquarters and manufacturing presence in Sweden and Belgium."

A ceremony in London commemorated the acquisition being wrapped up. Li and Lewis Booth, executive vice president and chief financial offer at Ford, attended.

"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 labor representatives and government officials in Sweden, Belgium and China as well as other relevant countries," Li noted.

Going Forward

While Ford does not hold any more ownership in Volvo, the Big 3 automaker will still provide the Swedish brand with powertrains, stampings and other vehicle components for differing time spans.

Additionally, Ford said it plans to offer the following during the transition period: engineering support, information technology, access to tooling for common components, and other selected services.

Ford and Geely have also worked out terms regarding intellectual property usage.

"The Volvo team has made tremendous progress in restructuring its business and delivering results during the sale process," stated Booth.

"We believe this agreement will provide Volvo with the necessary resources, including the capital investment, to strengthen the business and to continue to move it forward in the future," he added. "We wish Volvo's management team, employees and new owners every success for the future."

Booth continued: "Ford appreciates the support of the Volvo management team, Volvo's labor unions and the government officials in Sweden and China during this transaction."