Volvo Cars has fallen under Chinese ownership with Zhejiang-based vehicle manufacturer Geely.
The transaction will see Stefan Jacoby, currently the chief executive of Volkswagen Group of America, join Volvo Cars as its new president and chief executive officer.
Geely has announced that Volvo Cars will retain its headquarters and manufacturing presence in Sweden and Belgium.
As part of the transaction, Volvo and the American brand Ford will continue to "maintain close component and supply relationships, ensuring continuity in areas where they provide supply to each other", it has been announced.
This means that Ford will continue to supply parts to Volvo where required.
Geely Chairman Li Shufu said: "This is a historic day for Geely, which is extremely proud to have acquired Volvo Cars.
"This famous Swedish premium brand will remain 1 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."
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