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Chinese car maker Geely Holdings Group Co. Ltd. said it has completed its USD1.8 billion (NZ$2.45 billion) buyout of Ford Motor Co.’s Volvo unit, in a landmark foreign acquisition by a Chinese company.

According to Xinhua news agency, a handover ceremony was held in London yesterday where, Ford delivered all of its Volvo assets to Geely Holdings Group, after the deal won approval from regulators in China, the United States and the European Union.

In a telephone interview with Xinhua, Li Shufu, Chairman of Geely Group and Volvo Car Corporation, said he hopes to restore Volvo to a leading position in the global luxury auto market.

“After the takeover, Geely remains Geely and Volvo is still Volvo. The relationship between the two companies is brotherhood and not a parent-and-child relationship,” Li was quoted by Xinhua as saying.

“Volvo should enjoy a much better position in the global market given its quality, technology, research and development abilities and its brand value,” he added.

He said Volvo will remain headquartered in Gothenburg, Sweden, with management having autonomy to execute its own business plan.

As part of its business plans, Li said, Volvo will strengthen its presence in Europe and North America while also taking advantage of growth opportunities in China.

Geely has also announced the appointment of six members to the Volvo board, including Stefan Jacoby, President and Chief Executive of the new Volvo Car Corporation.

Li Shufu has been appointed chairman of the new board and Hans-Olov Olsson has been appointed vice chairman.

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