A new report from the US today has indicated China’s Geely (Motors) Holding Group is expected to finalise a US$2 billion offer this week to purchase Volvo from Ford.
According to the report published in the Wall Street Journal, Geely’s move to buy Volvo stems from a January 2007 discussion between Don Leclair, then Ford’s chief financial officer, and Geely chariman Li Shufu.
If the move goes ahead Geely could “slash the brand’s costs by taking advantage of lower product development and manufacturing costs available in China”.
Although speculative at best, the move is quite feasible given Geely’s positive financial position and prior interest in the brand.
Either way CarAdvice will be sure to keep you posted on any developments.