Geely chairman Li Shufu, who becomes chairman of the board at Volvo Cars, 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.'

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 Stefan Jacoby, chief executive of Volkswagen Group of America, will succeed Stephen Odell as Volvo Cars' president and chief executive, taking up his role on 16 August, 2010.

Mr Jacoby 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 opportunities.'

The board will comprise several new directors including Hans-Olov Olsson, former president and chief executive of Volvo Cars and a former chief marketing officer of Ford, who will become vice-chairman of the board. Hans Oscarsson, 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.

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 board.

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.