The talks between Ford Motor and Geely Group regarding the sale of Ford's Swedish unit Volvo Cars are not going very smoothly, Swedish daily Dagens Industri said today, citing reports from the negotiations.
The talks between US car major Ford Motor Co and Chinese Zhejiang Geely Holding Group regarding the sale of Ford's Swedish unit Volvo Cars are not going very smoothly, Swedish daily Dagens Industri said today, citing reports from the negotiations.
On 23 December 2009, Ford announced a preliminary agreement to sell Volvo to Zhejiang Geely, the parent company of Chinese car maker Geely Automobile.
"The positive signs given earlier have been exaggerated," Joran Hagglund, state secretary at Sweden's ministry for enterprise, said after a visit to Zhejiang Geely's chairman Li Shufu.
The earlier statements have originated in a need to show progress from Geely's side and a wish to keep the promise to have sold Volvo by the end of 2009 from Ford's side, DI said.
At the same time, Geely's scepticism has increased after the acquisition of South Korean Ssangyong Motor Co Ltd by Shanghai Automotive turned out to be a fiasco.
Furthermore, Ford is pushing to complete the deal, according to DI's sources.
One of the main hurdles in the process is reportedly the intellectual property rights as Geely insists on getting Volvo's all IP rights while Ford is struggling against such a scenario.
"The only thing I can say is that Ford and Geely do not agree," Hagglund said.