Geely Bids For Volvo

There is news that Ford is facing trouble offloading its failing Volvo subsidiary, but the company proposes to sell. There are reports that China’s Geely Automotive is the only company to bid for Ford Motor owned by Volvo car Corporation.

Swedish newspaper Dagens Industri has reported in his newspaper that Geely has officially sent a letter of intent to purchase Ford from Volvo. Unofficial sourced revealed that both the companies are under the procedure to nail out various details about technology etc that needs to be sorted during the buying procedure. Geely plans to start production of Volvo cars in the Guangdong Province of China.

The two companies have come under a contract that the new buyer would invest up to $ 10 million in the Volvo brand. The new model that will be presented in collaboration with Geely would be the next generation XC90 which would be released in 2011.

There were earlier reported that there were many bidders for Volvo like Beijing Auto, Dongfeng Motor Group, and Chongquing Changan Automobile Co and many other European companies.

The Chinese automaker who would take over Volvo would benefit as they would be a part of the Swedish technology, research and development team. The parent company is also well known for it safety.

The final sale price is still unknown but it is estimated that due to the weak economy the sale price would be substantially low.

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