Automotive News

A top executive of Geely Automobile Holdings Ltd. discloses that the company will acquire the 100% stake in Volvo, including the ownership of existing technologies in the fields of safety and environmental protection, as well as technologies of the latter's new car models.

Previously, foreign media reported that Ford Motor Company hoped to keep some solutions relating to safety and environmental-friendly engines in its negotiations with Geely. That is to say, the Chinese party will be unable to purchase advanced hybrid and electric car technologies jointly developed by Volvo and Vattenfall.

The aforesaid top executive has denied the guess, saying that Geely will acquire Volvo's plants of complete cars and components, R&D centers, warehouses, production equipment, and intangible assets.

Formerly, a person in the know revealed that Geely would complete the acquisition of Volvo with USD 1.5 billion to USD 2 billion before May 2010, and build a new plant in Beijing to produce Volvo-branded cars. The Chinese party has not confirmed the story.