Geely, which is offering to buy 100 percent of Volvo, has financing in place for the deal, Yuan Xiaolin, a spokesman for the Chinese automaker, said on Friday in Beijing. Ford named Geely as preferred bidder for Volvo in October.
Intellectual-property protection remains a stumbling block in the takeover because Ford will continue supplying components following a sale. Similar patent concerns derailed Beijing Automotive Industry Holding Co’s bid to buy General Motors Co’s Opel unit, the Chinese carmaker’s chairman said in July.
Geely is prepared to pay about $2 billion for Volvo, less than a third of what Ford paid a decade ago, people familiar with the talks have said. Dearborn, Michigan-based Ford plans to sell the unit to focus on its main Ford brand. – read more at ChinaDaily.com
2 Responses to “Chinese carmaker Geely says Volvo to retain technology after purchase”
Leave a Reply
You must be logged in to post a comment.
November 28th, 2009 at 9:53 am
[...] Go here to read the rest: Chinese carmaker Geely says Volvo to retain technology after … [...]
December 11th, 2009 at 3:03 pm
[...] The biggest news came out of the automotive industry, where Beijing Automotive announced its intention to acquire all or part of Saab from General Motors which also announced a joint venture with Shanghai Automotive to sell small cars to India. Ford Motor Company also made headlines in China, as Geely Holding Corp. discussed details of its 100% purchase of Volvo from Ford. [...]