The much anticipated deal between Ford and Chinese manufacturer Geely Automotive whereby the latter is to acquire Volvo, is set to be signed on February 8 according to the Chinese Media. Estimates for the final sale-price have been put between $1.5 billion and $2 billion. Ford acquired the Swedish carmaker in 1999 for $6.5 billion and has poured billions into it.
A Chinese source says that Geely plans to almost double Volvo”s production with the construction of a plant outside Beijing, and expects a return to profitability by 2011.
Chinese web site 163.com reports that the XC60 crossover could be the first model produced. The S40 and S80 sedans are already produced in China by a Ford-Mazda joint venture.
– By: Stephen Calogera
Source: Inside Line