Geely Confirms Interest In Volvo
If approved, the Belgian loans will only be applicable for Volvo’s local operations
Ford is having trouble offloading its failing Volvo subsidiary but the company is determined to sell and in spite of the tough economic conditions still has several potential buyers. According to a recent report, however, the only potential buyer that has so far placed a bid for the Swedish automaker is China’s Geely.
Geely has today confirmed that its parent wants to bid for Volvo, with CEO Gui Shengyue revealing that his company is willing to make any bid in conjunction with a government-backed investor.
“I believe if Volvo is for sale and Ford has a global announcement, then our parent company will participate,” Gui said. According to Gui, Ford is yet to decide whether to sell Volvo.
According to a previous report, Geely hopes to start production of Volvo cars in a new factory in the Guangdong Province of China. As part of the deal, Geely will reportedly invest up to $10 billion in building the Volvo brand and the first model to be fully designed under the guidance of the Chinese automaker will be the next-generation XC90 due in 2011.
Source:carsmart101.com
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