China’s Zhejiang Geely Holding Group Co. agreed to buy Volvo cars from Ford Motor Co. on Sunday for $1.8 billion, a landmark agreement designed to vault the Chinese company onto the global automotive stage.
Geely’s acquisition of the Swedish brand is the latest example of how China’s economic rise is reshaping large swaths of global business, Its huge market and increasingly powerful companies are playing a growing role around the world in industries ranging from cars to natural resources to telecommunications equipment.
The Volvo deal—which comes after China surpassed the U.S. last year as the biggest auto market—puts a Chinese company for the first time in charge of a major global car brand.
“I think Volvo is a tiger,” said Geely Chairman Li Shufu, who confirmed that Geely will build Volvos in China. “To liberate the tiger, we need to think on how to uncover the value in Volvo.”
Read more about Geely via CDT.