Zhejiang Geely Holding Group is seeking $1billion in loans from Chinese banks to finance its bid for Ford-owned Swedish car maker Volvo. Sources say that three major banks; Bank of China, China Construction Bank, and Export-Import Bank of China have agreed to extend loans to the company.
A point of contention that remains is the future sales strategy for Volvo, as Geely wants more modern and innovative technologies so that they may fully tap the Chinese market.
Though no official price has been disclosed, there is speculation that it is around $2 billion. Ford paid $6.45 billion for the company just a decade ago.
-By Stephen Calogera