Geely secures cash to purchase Volvo from Ford
A report published in Swedish business daily Dagens Industri, says the parent company of China's Geely Automobile Holdings, Zhejiang Geely Holding Group (ZGH), has secured the cash it requires to finalise the purchase of Volvo Cars from Ford Motor Company.
The report, citing sources, said the 15 billion Swedish crowns (AUD$2.3 billion) was already "in the bank account" of ZGH which virtually guarantees the financing of it business plan for Volvo.
Earlier this week, ZGH said it had yet to formally sign an agreement in its ongoing bid for Volvo, though its plan to buy the brand was proceeding as planned.
According to an earlier report by Reuters, the company, China's largest privately owned car manufacturer, had aimed to complete the deal by May this year.
Geely plans to nearly double Volvo's annual global production with a new factory in Beijing set to put the Swedish manufacturer back in the black by 2011.
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