Chinese automaker Geely has signed a letter of intent to purchase Volvo from Ford, a Chinese news site is reporting today. The report cites anonymous sources in the Chinese government and no official word has come from Volvo, Geely or Ford, nor has it been corroborated by other sources, lending doubt to its accuracy.
According to the report, Ford and Geely are still working out many details of the agreement, including the transfer of technology, Volvo's marketing and market position and any layoffs that will stem from the sale. Volvo will reportedly move a production line to the Chinese city of Dongguan in the Guangdong Province. The report indicates that Geely has already gotten the OK from the city and has applied for land and a loan to build a new factory on, though big business deals in China require the approval of the federal government. No purchase price was reported.The report says that Geely will invest US$10 billion in building the Volvo brand both in China and abroad. The first model to be built under Geely's watch will reportedly be the new 2011 XC90, at least one version of which will be built at the proposed new facility in Dongguan. It is not known how this deal, should it exist, will affect Volvo's partnership with Geely's rival Chinese automaker Chang'an.
Thanks to: Motor Trend
