Geely head to lead Volvo Cars

Li Shufu, the chairman of Chinese firm Geely, will also lead Volvo Cars when the acquisition of the Swedish firm is complete, the two firms said on Thursday.

• EU green lights Volvo and Dongfeng merger (8 May 13)
• Volvo posts biggest loss since financial crisis (25 Apr 13)
• Volvo Cars expected to post major losses (18 Apr 13)

"We have made significant progress in assembling the team that will develop Volvo Cars under Geely's ownership. Today's board appointments underline my personal commitment to this famous company," Shufu said in a statement.

Geely also named Hans-Olov Olsson as vice chairman, who served previously as president and chief executive of the Swedish car maker.

Further management and board appointments, including a new chief executive and chief financial officer, will be announced prior to completion of the takeover, the statement added.

Geely acquired loss-making Volvo Cars in March from US auto giant Ford, paying $2.7 billion dollars in all -- a price of $1.8 billion plus $900 million in working capital to improve the brand.

The European Union's competition watchdog last week cleared the takeover.

Geely has said it plans to expand Volvo's presence in China, now the world's largest car market.

Geely has become one of China's biggest private car makers since launching its auto manufacturing business in 1997. It has annual production capacity of 300,000 cars but has sold fewer than 200,000 abroad since 1997.