Geely's smart move in vying for Volvo

It's not surprising to hear that Chinese automaker Geely has received the confirmation letter from the National Development and Reform Commission on oversea acquisitions, which means its intention to bid for Ford Motor Co.'s Volvo, as it has been working for the plan for such a long time, almost three years, some say.

But it's still doubtful whether Geely can submit a final bid before the end of this month with an offer anticipated to be around $2 billion, as reported by Wall Street Journal.

For unknown reasons, both Ford and Geely have made no official statements that would confirm what's being reported in the media.

In another sight Volvo Car's engineers union said that they do not think that a Chinese buyer will do any good to Volvo, and they still hope to get a European owner that has a similar corporate culture to Volvo.

"How could you expect a less experienced Chinese owner to turn Volvo around if even Ford failed to do so?” the union's leader Magnus Sundemo said. His concerns are reported to have gained support from the Sweden government.

Geely is smart in keeping a low key attitude in a deal whose prospective is not much appreciated, as there are too many hurdles to overcome.