Geely Reportedly Secures Funding to Buy Volvo from Ford

#Volvo

The Saab-Spyker deal is finally completed, and the sale of Sweden’s other major automaker -- Volvo -- reportedly is progressing steadily. Reports suggest Chinese automaker Geely has recently secured funding to complete the purchase from Ford.

Dagens Industri, a Swedish business newspaper, says that Chinese financial institutions and regional governments have provided Geely’s parent company, Zejiang Geely Holding Group, with enough funding to finalize the transaction. The reported selling price is 15 billion Swedish Kroner, which equates to roughly $2.1 billion. The money is already “in the bank account,” according to the newspaper’s source.

Geely originally wanted to finalize the sale by February 14, but has not yet completed the transaction. The Chinese company says that the progress is still being made, and that it should be completed by May.

If and when Geely does finally acquire Volvo, it plans to almost double Volvo’s annual global production with a new factory in Beijing, and return the brand to profitability by 2011.

Source: Reuters

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