SHANGHAI, China — Independent Chinese automaker Geely is expected to sign a definitive deal to acquire Sweden's Volvo Car from Ford on February 8, according to media reports in China.
Geely and Ford have been negotiating the potential sale of the money-losing Volvo operation for months. The final sale price is estimated between $1.5 billion and $2.0 billion, according to the Shanghai Daily.
Ford purchased Volvo in 1999 for $6.5 billion and since then has poured billions of dollars into the company.
Late last year, Ford said that it had settled most of the substantive issues related to the deal. Chinese media reported that government regulators in Beijing, including the important National Development and Reform Commission, have given their support.
The deal is expected to be closed in May, press reports said.
In the meantime, the Shanghai Daily, quoting an unnamed source, said Geely plans to nearly double Volvo's annual global production by building a new factory outside Beijing and expects to return Volvo to black ink by 2011.
The Chinese Web site 163.com reported that the XC60 crossover might be the first Volvo model to be produced in China by Geely.
The Volvo S40 and S80 sedans currently are assembled in Chongqing by the Chang'an Ford Mazda joint venture.
Inside Line says: It appears that major assets of both Swedish auto firms — Volvo and Saab — may wind up in the hands of Chinese automakers. — Hu Lei, Correspondent
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dino6 says:
01:48 PM, 01/28/2010
appliance that's a really weak argument. Boeing etc. receive billions from the government because they are defense contractors and they build military equipment for the government. The government is a customer and Boeing, etc. are suppliers. In the case of GM, the government had to step in as a bail out investor to save the company from bankruptcy. Have you ever taken a business class?
notabigdeal says:
06:41 AM, 01/28/2010
I'm not really a auto expert but... does mercury even sell cars? more then volvo's?
appliance says:
01:29 AM, 01/28/2010
@dino6: Don't worry most of your taxpayer money still goes to Grumman, GE, Northrop, Boeing, .....
It's OK
thejohnp says:
07:38 PM, 01/27/2010
Wonder if a case could be made to sell off Mercury and Lincoln and keep Volvo?
dino6 says:
06:44 PM, 01/27/2010
That's too bad because Volvo has done a lot for Ford including the platforms for the Taurus/Flex/MKS, and I think Volvo has some of the best designed vehicles stylewise in the market today, and still carries the safety cachet. If GM was able to keep Opel, how come Ford couldn't keep Volvo. Oh yes, GM received taxpayer money, Ford didn't.