Is Volvo 100% Owned by Geely?

Volvo Cars, a Swedish luxury car maker has faced major control changes in the last ten years. Volvo Cars is frequently referred to as being owned by Geely, a Chinese global automotive corporation. However, the extent of this ownership is a topic of interest for many.

Geely's Acquisition of Volvo

In 2010, Geely Holding Group acquired Volvo Cars from Ford Motor Company for $1.8 billion. The deal marked a significant step in Geely’s global expansion strategy and positioned it among the key automotive industry players. Since then, Geely has been actively participating in the management and development of Volvo Cars.

The Current Ownership Stake

The latest information available indicates that Geely Holding Group has a notable stake in Volvo Cars. However, it is not accurate to say that Geely owns 100% of Volvo. While Geely is the largest shareholder, there are other stakeholders involved, and Volvo Cars is operated as an independent company within the Geely group.

Volvo's Independent Operations

Even with the majority shares being held by Geely, Volvo Cars has maintained its base in Sweden and is still running as a separate entity. The ownership of Geely has seen Volvo experience a resurgence in terms of new models and increased sales. This independent operation allows Volvo to preserve its brand identity and go forward with its tradition of safety and innovation.

The Influence of Ownership on the Future of Volvo

The ownership structure has enabled Volvo Cars to benefit from Geely's resources while retaining its Swedish roots and brand ethos. In the future, Volvo is determined to expand its range of electric vehicles to become completely electric by 2030. The support from Geely as the chief stakeholder will probably play an essential role in realizing this bold ambition.

To summarize, Geely became the majority owner of Volvo Cars following an acquisition in 2010. Volvo Cars operates independently thus it has kept its Swedish roots as well as maintained its brand name. Therefore, having been acquired by Geely, this has positively affected Volvo’s expansion strategies and plans, especially on electric cars.