Volvo and Geely yet to Sign Final Agreement
We apparently though that Volvo was now under the Chinese hood with the official proceeding to finally end by February. But China’s Geely Automobile Holdings says that it has yet to sign an agreement for the complete acquisition of Ford Motor’s Volvo.
“We haven’t reached a final agreement so far,” said company chairman Li Shufiu.
The Chinese company had earlier announced its plans of purchasing Volvo at $2 billion USD completely by May. But this recent announcement brings some other picture of the deal to light. Geely had already obtained some regulatory approvals needed to finalize the deal stating its plans to turn the Swedish vehicle manufacturer Volvo lucrative by 2011. The company had planned to double the current production rate of the Volvo cars at its Beijing factory.
The delay in the agreement however brings some concern whether the purchase will be completed as scheduled or not or at all. The Sichuan Tengzhong Heavy Industrial Machinery Co’s deal for Hummer had collapsed last month pertaining to lack of support from the Chinese government. Geely however confirms the regulatory support but provides no reason for the delay in signing the final agreement.